Evoke Reports Significant Loss Increase Ahead of UK Tax Increases

Evoke’s loss after tax soared by almost 150% for 2025 to £549.1 million, with non-cash impairments to its UK retail and online business ahead of tax hikes in the country, and the company will also close about 270 shops.

The operator, which owns William Hill, 888 and Mr Green, reported a significant increase from 2024’s after-tax loss of £220.9 million. Evoke mentioned £440.3 million of non-cash impairment charges, which it said reflected “the change in external market environment following the significant increase in UK online duties announced in November, alongside challenging high-street trading conditions.”

Confusing reason given

Despite Evoke’s claim about the difficulties of tax increases, these were not introduced in 2025. From the start of April 2026, remote gaming duty, paid on online casino bets, increased from 21% of gross gaming yield (GGY) to 40%.

In addition, general betting duty, paid on online sports bets, will be raised from 15% of GGY to 25% in April 2027; bets on horseracing will be exempt from this. The changes were announced last November.

Despite the after-tax loss, Evoke’s EBITDA went up 43% to £301.3 million, and its revenue increased 2% to £1.78 billion. However, UK and Ireland online revenue was down 3%, with growth in gaming driven by William Hill that was offset by a reduction in 888, due to strategic focus on profitability.

UK retail was down 1%, which was driven by sports, and gaming was up 5% following a rollout of new gaming machines across the William Hill estate, which completed in March 2025.

Bally’s Intralot takeover?

Following the announcement of the tax increases, Evoke said it was carrying out a strategic review, which could include a sale of the group. Earlier this month, Evoke confirmed it has opened talks with Bally’s Intralot over a potential takeover. Evoke said discussions have taken place over a potential offer for the company worth £0.50 per share, which would value it at £225 million.

Bally’s Intralot is expected to announce its intention to make an offer by the middle of May. While Bally’s Intralot has stated there is no certainty an offer will be made, its CEO Robeson Reeves said in a recent earnings call:

“We see a compelling opportunity to bring our operating model to a significantly larger business, and the potential to transform its financial performance through massive synergies that we are uniquely positioned to deliver.”

A “substantial impact”

Addressing the UK tax issue, Per Widerstrom, Evoke CEO, said:

“Throughout 2025 we delivered consistent operational progress resulting in a more efficient, focused and disciplined business delivering improved marketing returns, stronger cost control, enhanced operating leverage, and a step-change in underlying profitability.

“However, the significant UK duty increases announced in November represented a fundamental shift in the economics of our largest market and will have a substantial impact across the regulated industry. We have acted decisively to mitigate the impact of these changes and protect long-term shareholder value, including initiating a strategic review and implementing significant operational actions across the business.”

Shop closures

Prior to the announcement of the tax rises in November, Evoke said it was considering reducing its number of betting shops in the UK, Evoke has now confirmed it will close 270 shops. Potential shop closures have also been mentioned by Entain, owner of Ladbrokes and Coral, and Betfred, while Paddy Power owner Flutter Entertainment was reported to be closing 57 shops in the UK and Ireland.