Evoke, the owner of William Hill and 888, has initiated widespread cost-cutting measures and shuttered betting shops in response to recently announced tax increases targeting the UK gambling sector. The changes follow the November budget, which set out higher duties on both online gaming and online sports wagering. The group has stated that these policy adjustments have prompted a strategic review and that potential outcomes include the sale of the company or its assets.
The company began its review last December after the Chancellor announced that remote gaming duty would rise sharply in the coming year and that a new duty on online sports betting would follow. Evoke has described its approach to these developments as “quick and decisive,” citing measures intended to limit the financial impact of the higher tax burden.
Shop Closures and Cost Reductions to Offset Higher Duties
The group has acted to mitigate the additional costs through the closure of betting shops and broader cuts across the organization. Executives signaled that up to 200 retail locations could be shut if taxes rose, though the company did not confirm how many sites had already closed. The company has also considered adjustments to customer offerings and supplier arrangements as part of its cost-control program.
Internal projections indicated that changes to online gaming duties combined with the new online sports betting duty could raise annual duty costs by as much as £135 million from 2027. Evoke said it expected to offset approximately half of this impact through store closures and other savings. According to The National, one update noted that the remote gaming duty would increase from 21% to 40% from April next year. Beginning in 2027, a separate online sports betting duty of 25% would apply to sports other than horse racing.
In trading updates, the company reported that betting revenues faced the steepest decline during the most recent quarter, falling 22% year-on-year, while gaming revenues increased 9%. Total quarterly revenue reached £464 million, which represented a 7% gain from the immediately preceding quarter. However, revenues were 4% lower on a constant currency basis compared with the same period a year earlier, which had benefited from favorable sports results.
Strategic Review and Reaction to Budget Decisions
As part of its broader response, Evoke is currently assessing its strategic options. The company noted that its board is focused on maximizing shareholder value as it evaluates possibilities. The review has included exploratory talks over the sale of retail assets, while the business continues to manage high levels of debt and growing regulatory exposure.
Company leadership has repeatedly expressed disappointment with the November budget outcome. Per Widerstrom, chief executive of Evoke, stated: “We were very disappointed with the outcome of the UK budget in November that dealt a significant blow to both Evoke and the wider regulated industry.” He added: “We continue to believe these tax increases will negatively impact the industry’s economic contribution, customer protection, and will ultimately serve to support further growth in the illegal black market.” He also said: “As a result of these significant UK tax increases, the board is assessing its strategic options, with a resolute focus on maximising shareholder value.” Widerstrom further noted: “We have moved quickly and decisively to execute on our mitigation plans including the closure of retail stores that are no longer sustainable as well as broader cost savings, and we will update shareholders on our progress and updated strategic plan in due course.”
In another statement, Widerstrom described recent quarterly performance as the company’s strongest of the year and reported that record revenues in Italy and Denmark contributed to the result. He also commented that the momentum continued into 2026 and that the firm would not provide forward-looking financial guidance while the strategic review remained active.
The response from financial markets has reflected concerns about the company’s long-term position under the new tax regime. Shares fell in morning trading following an update that omitted further details about the review and did not specify the number of retail closures. Investors have paid close attention to the company’s debt levels, exposure to higher duties, and the implications of potential asset sales.
Evoke has stated that it will update shareholders and the wider market on the progress of its strategic review when appropriate. Meanwhile, the company continues to carry out its cost program as the new duties approach their implementation dates.
