Evoke has begun a formal examination of its future direction, telling investors it will assess several possible routes for the business after recent UK tax decisions reshaped its financial outlook. The announcement comes amid a steep decline in the company’s value and follows its withdrawal of medium-term targets in the wake of higher gaming and betting duties.
Review Initiated As Pressures Intensify
The group said it had launched a strategic review that will consider numerous options, including the potential sale of the entire company or individual parts of the business. In its market notice, Evoke stated it would look at “a range of potential alternatives to maximise shareholder value, including, but not limited to a potential sale of the group, or some of the company’s assets and/or business units”. The company appointed Morgan Stanley and Rothschild to support the assessment and noted that no outcome is guaranteed.
The move follows the UK chancellor’s recent decision to raise online gaming duty from 21% to 40% and increase the rate on online sports betting from 15% to 25%, with an exception for horse racing. Evoke previously warned the changes could add up to £135m to its annual tax bill. The company said the higher rates would “drive customers to the black market, reduce overall tax generation, lead to thousands of job losses, and decrease investment in UK sports”.
Shares reacted sharply to the review announcement, climbing by nearly 9% in one update and more than 10% in another trading session. Even so, the stock remains far below its earlier levels. As The Guardian reports, since the business — then operating as 888 Holdings — bought William Hill’s retail network of 1,400 betting shops for £2.2bn, its valuation has fallen by more than 90% to under £100m. Analysts have pointed out that the tax increases could further strain Evoke’s already significant leverage, with net debt at £1.82bn.
Businesses Under Scrutiny As Options Expand
Reports in late November said Evoke had considered the possibility of selling its Italian division, with estimates that the unit could attract offers in the hundreds of millions of pounds. Although Evoke did not comment at the time, it acknowledged that its strategic review follows both the budget announcement and “recent media speculation”. Italy is one of the company’s key international markets, alongside Spain, Denmark, and Romania.
The group’s most recent trading figures showed that its international division delivered the strongest momentum in the third quarter of 2025. Revenue there rose 8% to £150.4m, supported by growth across gaming products and double-digit gains in Italy, Denmark, and Romania. Across the business, quarterly revenue increased 5% to £435.4m, with UK and Ireland online activity contributing £163.3m. Retail betting revenue in the UK reached £121.7m.
Despite the pressures, the company reaffirmed expectations of an adjusted EBITDA margin of at least 20%, while maintaining medium-term goals of 5% to 9% annual revenue growth and incremental margin expansion through 2027.
Evoke’s financial structure remains a central challenge. One industry figure suggested that bondholders might ultimately assume control and sell off parts of the business, such as the William Hill retail estate, to recover value. Analysts have also questioned which buyers might step forward, given the company’s debt and the competitive concerns that would arise if major UK operators attempted to acquire the business.
In addition to fiscal pressures and weakening market confidence, Evoke has been dealing with several compliance failures. The company removed its chief executive in 2023 and suspended VIP activity in the Middle East during an internal review of shortcomings in anti-money-laundering procedures. The business said that certain “best practices have not been followed” related to “know your client” and anti-money-laundering regulations. Earlier penalties included a £9.4m fine in 2022 and a £7.8m fine in 2017 for regulatory breaches.
The ongoing high court case involving Kenny Alexander and Lee Feldman has added further complications. They claim that the Gambling Commission violated their privacy when Evoke issued an update during their attempted takeover. Testimony in the case confirmed both men were aware that Alexander was a suspect in an overseas bribery investigation during their discussions with the company.
As Evoke now moves through its review process, the company has told investors that further details will be provided only “when and if appropriate”.
