Just a few weeks after the UK government announced its autumn budget, gambling giant Evoke (which owns well-known brands such as William Hill and 888) dropped a "bombshell" on the London Stock Exchange: announcing a comprehensive strategic review, and even considering the sale of the entire group or parts of its business. Upon the announcement, the company's stock price surged by 12%, eliciting a fervent market reaction. According to observations from the PASA official website, this decision is directly related to the upcoming significant increase in gambling tax rates in the UK, forcing this long-established operator to reevaluate its future.
Strategic Review Initiated: All for Shareholder Value
This Tuesday, Evoke issued a brief statement through the London Stock Exchange, formally announcing a strategic review of the group. The statement was quite straightforward, stating that the purpose of the review is "to maximize shareholder value," and the options considered include but are not limited to "selling the group, or parts of its assets and/or business units." For this major test, Evoke has specifically enlisted Morgan Stanley and Rothschild & Co as financial advisors, a significant lineup. Of course, the company also cautiously stated that it is "uncertain whether any transaction will materialize from this review," and further developments will be announced in due course. This is essentially a clear signal to the market: in response to changes, the company is actively considering all possibilities, including "cutting off a limb to survive."
UK Tax Reform Becomes a "Catalyst": Operator Directly States "Highly Detrimental"
Why is Evoke suddenly "reviewing its future"? The direct instigator behind this is last month's autumn budget announced by UK Chancellor of the Exchequer Rachel Reeves. According to the new regulations, the UK's remote gaming duty will jump directly from the current 21% to 40% starting next April. And that's not all, from April 2027, the general betting duty on remote betting will also increase from 15% to 25%. Now, operators with the UK as one of their main markets face sharply increased cost pressures. Evoke's CEO Per Widerström blasted the tax increases as "ill-considered, counterproductive, and highly detrimental," which would severely harm businesses, employees, and customers. Evoke's statement on the strategic review also hinted at this, explicitly mentioning the statement on the day of the budget and "recent media speculation." Previously, there were reports that Evoke had devised contingency plans, considering selling its Italian business to offset the impact of the UK tax increase, reportedly worth "hundreds of millions of pounds."
International Business Shines: Italian Market Performs Impressively
Despite challenges in the UK domestic market, Evoke's performance in international markets has been a bright spot. According to its financial report for the third quarter of the fiscal year 2025, the international division (core including Italy, Spain, Denmark, and Romania) saw revenue growth of 8%, reaching £150.4 million, with gaming revenue even surging by 13%. Evoke specifically mentioned that it achieved double-digit growth in Italy, Denmark, and Romania. In Italy, Evoke operates William Hill Online as well as several 888 brand casinos, sports betting, and poker sites, which have become an important engine for its international growth. Overall, Evoke's total revenue for the third quarter reached £435.4 million, a year-on-year increase of 5%, and reaffirmed its expectation for an adjusted EBITDA profit margin of at least 20%, showing a certain financial resilience.
What Next: Sell, Consolidate, or Hold Fast?
Initiating a strategic review means that Evoke stands at a crossroads. Will it sell entirely to larger capital, or divest strong-growing but potentially "painfully parted" non-core assets like Italy, to focus resources and optimize the balance sheet? Given the impressive growth data of its international business and the company's set target of 5%-9% annual revenue growth by 2027, any decision will be carefully calculated. The positive stock price reaction from the market may reflect investors' expectations that this review could unlock the company's potential value. Regardless, the next steps of this gambling group, which owns multiple established brands, will undoubtedly provide an important weathervane for the increasingly regulated European gambling market.
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This article is from "PASA-Global iGaming Leader," a gambling industry news channel:https://t.me/pasa_news
Original in-depth gambling channel:https://t.me/gamblingdeep
Free data reports: @pasa_research
PASA Matrix: @pasa002_bot
PASA official website: https://www.pasa.news
