William Hill Owner’s Share Price Climbs Over Bally’s Takeover Proposal

William Hill owner Evoke has received a boost from the stock markets with reports emerging that Bally’s is considering a buyout of the struggling UK-listed gambling company. It is thought that Bally’s value Evoke at £225 million.

Talk had abounded over the weekend that Bally’s is hoping to wrap up a deal over the coming days. Bally’s, which has a front-of-shirt sponsorship deal with Nottingham Forest, is looking to increase their footprint further in the UK, and they have been informally granted bidder status.

Terms of the offer

The proposed offer on the table is believed to be a 29% premium, including an all-shares option. Apart from an all-share combination, with each share valued at 50 pence, there is also a partial cash alternative in the mix.

Following news of a potential takeover, Evoke’s shares climbed by 16%, which was almost a third higher than the closing price on Friday. A statement issued by Evoke read:

“Bally’s Intralot has confirmed to the company that it will, by no later than 5pm (London time) on May 18 2026, either announce a firm intention to make an offer for the company or announce it does not intend to make an offer.

“This deadline can be extended with the consent of the company. Bally’s Intralot has confirmed that any firm offer, if made, would be subject to customary conditions and approvals and that it reserves the right to vary the terms of any such offer, including the price, the form and mix of consideration and structure of the transition.”

Markets react well

A 16% surge in the Evoke share price is certainly a step in the right direction, given the company’s current problems. Apart from being saddled with a debt mountain of around £2 billion, William Hill announced at the start of the month that it would be dismantling a significant chunk of its retail empire.

As many as 200 betting shops are set to be axed on May 24, and the company has 1,300 land-based venues on its books. More worryingly, Evoke’s share price has plummeted over the past five years, and it took the decision to delay announcing its Financial Year 2025 (FY25) results until the end of this month, fuelling further speculation that the company is set for a major shake-up.

Fallout from the UK budget

The November budget presented by the Chancellor of the Exchequer, Rachel Reeves, has forced many betting companies to pivot. Aside from a hike in Remote Gambling Duty (RGD) on online casino gambling from 21% to 40%, the general betting duty rate levied on digital sports wagers will climb from 15% to 25% next year.

As a consequence, Evoke appointed banking giants Morgan Stanley and Rothschild to carry out a full strategic review to decide how to handle their assets, but things have been a bit quiet on that front. Evoke’s CEO, Per Widerstrom, recently revealed the impact that the budget would have on the company.

He said:

“The group currently expects to be able to mitigate approximately 50% of the impact from higher duties over the medium-term through supplier savings, reduced marketing, retail store closures, and potential changes to the customer proposition.”

The next steps

Although discussions over a potential deal remain finely in the balance, Bally’s doesn’t have too long to think about an offer. The clock is ticking, but if Bally’s, which owns a string of US casinos and has a casino in Newcastle, were to take over Evoke, it would represent a serious coup.