Adam Roarty is a journalist covering sports betting, regulation, and industry innovation for CasinoBeats. His coverage includes tax increases in the UK, covering breaking stories in the ever-evolving landscape of US betting such as the...
Read Full BioEvoke, the parent company of betting brands William Hill and 888, has contacted its shareholders about the possibility of selling or splitting the company.
A statement to shareholders said the gambling group has decided to “undertake a review of the company’s strategic options, which will include the consideration of 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 has appointed Morgan Stanley and Rothschild as its joint financial advisers in connection with the review. As news broke of the potential sale, share prices jumped over 9% from 21.95 GBX to 24.75 GBX. However, the initial reaction quickly subsided, and the price has since fallen back to 23.25 GBX.
William Hill Acquisition Leads to Share Price Plummeting
The company’s value has plummeted since it paid £2.2 billion ($2.93 billion) to buy William Hill’s network of 1,400 bookmakers. This followed the acquisition of William Hill’s American assets by Caesars.
When acquiring the non-US side of William Hill in September 2021, Evoke’s share price was at 458 GBX. It has steadily fallen by over 90% since then.
The investment loaded the company with debt, seriously impacting its profitability. After years of huge net losses, the group reported a profit of £5.4 million ($7.2 million) in the first half of this year.
Tax increases in the UK, however, have further worried investors and could be one of the key reasons behind the review. UK Chancellor Rachel Reeves announced new higher rates of gambling taxes last month, with online gambling targeted. While many companies rebounded from an initial drop in value following the announcement, Evoke’s price has failed to rally.
William Hill Shops & Online Market Closings
In preparation for the higher tax rates, Evoke announced it would close 200 William Hill betting shops across the UK in October. A company spokesperson said the tax increases would “impact investment in the UK and drive more customers to the black market.”
They added, “As part of our ongoing planning, we are assessing the potential impact of different overall tax scenarios on our UK operations. This includes the difficult but necessary consideration for shop closures.”
Additionally, William Hill withdrew its online platform from 13 countries at the start of this month, mainly in Africa, as well as Nepal and Vietnam. This followed withdrawal from India in September, following its clampdown on online gambling.
Lawsuit Over Failed Takeover Bid Begins
Before rebranding to Evoke and acquiring William Hill, 888 was the subject of a takeover bid from former Entain CEO Kenny Alexander. The company withdrew from talks after the UK Gambling Commission confirmed it was investigating Alexander over allegations he spearheaded an illegal gambling operation for Entain in Turkey.
Alexander, along with fellow executive Lee Feldman, began proceedings in a lawsuit against the Commission this week, claiming the information divulged to 888 violated privacy laws.
Both men are separately facing criminal charges of fraud, bribery, and tax evasion over how GVC Holdings (now Entain) handled its Turkish online gambling business between 2011 and 2018. The trial in that case is not expected to begin until 2028.
Had Alexander taken over 888, the Commission warned it risked losing its UK license. The announcement this week could similarly bring big changes to the company’s operations.
