Evoke Consults Banking Giants in Strategic Review - No Decision Made

William Hill owner Evoke has appointed two banking giants to help carry out a strategic review of its businesses in the wake of the budget tax raid.

The UK-listed gambling company, which also operates 888Sport, 888poker, and 888casino, have brought in Morgan Stanley and Rothschild to discuss the next financial steps.

Evoke was hit particularly hard in the Budget announcement last month, where Remote Gaming Duty (RGD) soared to 40%, while general duty on sports betting is poised to climb from 15% to 25% in April 2027. More worryingly, the new online sports betting tax is likely to result in Evoke’s costs rising to £135 million per year.

Options on the table

Currently, Evoke has a couple of options on the table. It is believed that the company’s directors are considering either selling the group or selling some of its business assets. Evoke could incur a significant loss on William Hill, having only stumped up £2.2 billion four years ago to purchase its network of 1,400 brick-and-mortar shops.

While Evoke might find itself caught between a rock and a hard place, the company could choose to pump more investment into one of its four core markets in its international division, and that includes Italy.

During Q3 of the 2025 financial year, Evoke recorded double-digit growth in Italy, and this followed a similar pattern to the first half of the year.

A company saddled with debt

Clearing the mounting debt pile remains one of Evoke’s principal objectives. As of the end of June this year, Evoke’s net debt stood at £1.82 billion, and they had a net debt to Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) ratio of 5x.

Compared to Entain (3.1x) and Flutter (4x), Evoke seems more likely to be impacted by the gambling tax changes. Some analysts have warned that the new tax regime could place further pressure on Evoke, but Berenberg analyst Jack Cummings thinks the strategic review carried out by Evoke is sensible.

He said:

“It’s a business that actually has some good units, but it is constrained by operation. A strategic review makes a lot of sense given the leverage.”

Tainted past

Although official forecasts were pulled following the budget over potential job cuts and shop closures, Evoke’s market capitalisation is thought to have fallen to about £98m. Some industry sources suggest there isn’t much appetite for Evoke’s assets, and they suggested that bondholders might strip its assets to recoup some money.

Evoke’s troubles haven’t been limited to external pressures. Rather, there have been a series of high-profile Anti-Money Laundering (AML) compliance failures that have blighted the company.

In 2022, the Gambling Commission slapped William Hill with a £9.2 million fine after multiple failings left customers racking up huge losses during the COVID lockdowns.

Five years earlier, the Gambling Commission handed out a £7.8m penalty to 888, which at the time was a record. An investigation discovered that the site had allowed more than 7,000 self-excluded gamblers to continue betting.

Precarious future

At this stage, it remains unclear as to how long the review will take or what path Evoke will take. Betting.co.uk reached out to Evoke and its banking partners for further details, but neither was prepared to comment, so it could be some time before a decision is made.