Key Moments:
- Evoke has withdrawn its 2026 financial outlook due to major changes in the UK gambling tax regime.
- The group is conducting a comprehensive strategic review, considering asset sales, restructuring, or a potential sale of the business.
- Remote Gaming Duty will increase from 21 percent to 40 percent from April 2026, with further tax hikes scheduled for 2027.
Revised Guidance Following UK Tax Shift
Evoke, the owner of William Hill UK and 888, has suspended its financial projections for 2026 after the UK government’s altered tax policy significantly raised operating costs for regulated gambling companies. The company is reassessing its strategy, as the impact of the revised tax rules has disrupted previous medium-term plans.
Although Evoke reported improved profitability for 2025, the company experienced a 3 percent year-on-year decline in fourth quarter revenue. This decrease was attributed to an unusually favorable sports results period in the prior year. For 2025, full-year revenue is expected to be around £1.79 billion, approximately 2 percent higher than in 2024. However, management cited the increased uncertainty as the reason for withdrawing guidance for 2026.
Tax Changes and Their Impact
Legislation announced during the November Budget will raise Remote Gaming Duty from 21 percent to 40 percent beginning April 2026. Additionally, a new 25 percent tax rate for remote betting will start in April 2027, with most online sports betting moving into this higher tax bracket.
Chief executive Per Widerström described the tax changes as delivering a significant setback to Evoke and the industry. He cautioned that elevated tax rates may curtail investment, harm consumer protection, and potentially drive more activity toward unlicensed operators.
Evoke previously projected that these tax changes will increase its annual tax expenses by £125 million to £135 million when fully enacted. In 2026 alone, the company expects roughly £80 million in additional tax charges before any countermeasures. Management has also flagged possible job reductions and decreased support for UK sports, including horse racing, if the tax increases proceed as scheduled.
| Tax Change | Effective Date | New Rate | Estimated Annual Impact |
|---|---|---|---|
| Remote Gaming Duty | April 2026 | 40% | £80 million in 2026 (partial year) |
| Remote Betting Duty | April 2027 | 25% | Additional costs anticipated by 2027 |
Strategic Review and Financial Stability
The company faces these headwinds amid substantial financial obligations. Evoke reported net borrowings of approximately £1.8 billion as of mid 2025, prompting heightened attention from credit rating agencies. S&P Global has recently revised Evoke’s credit outlook to negative.
In December, the board initiated a strategic review considering multiple scenarios, such as asset divestment, business sale, or financial restructuring. The continuation of this process and the decision to suspend 2026 guidance underscore the centrality of the review to Evoke’s path forward.
Evoke’s share price has dropped by more than a third since the tax measures were announced in the Budget, though it has shown intermittent rallies due to speculation about potential acquisitions or break-ups.
Business Performance Across Regions
Evoke’s operational results present a mixed picture. The UK retail segment experienced a rebound in 2025, aided by betting shop refurbishments and the addition of new gaming machines. Both the UK and Denmark set record quarterly revenues in the fourth quarter, but overall group revenue declined for that period.
Outside the UK, markets such as Italy, Denmark, and Romania continue to deliver healthy growth, which has helped balance softer results in other areas of the business. In the UK and Ireland, online expansion stayed modest during the year, as Evoke dialed back promotional spending on its 888 brand to prioritize profitability and attract higher quality customers.
Evoke has also reinforced its focus on core markets following its exit from US consumer operations.
Industry Implications and Uncertainty Ahead
Industry observers may view Evoke’s response as an early indicator of the broader effects of the UK’s revised tax environment, particularly for operators with significant domestic exposure. While larger competitors may be shielded by international diversification and stronger balance sheets, Evoke’s more limited scope leaves it more susceptible to further earnings pressure.
Looking forward, key areas of focus include the extent to which Evoke can offset the increased tax burden, the outcome of the ongoing strategic review, and the ability of UK operators to adjust pricing without intensifying migration towards unregulated platforms.
Evoke has opted to halt all forward-looking guidance as it works through these challenges, allowing the strategic review process to determine its future course amid the evolving UK tax framework.
- Author
Daniel Williams
