Evoke reported its full-year results for 2025 on Thursday. The gambling group increased revenue by 2%, but impairments related to tax increases in the UK led to big losses and increased debts ahead of the group’s potential sale.
The company that owns betting brands William Hill and 888 generated revenue of £1.78 billion ($2.42 billion). Net debt, however, increased to £1.86 billion ($2.53 billion), up from £1.79 billion in 2024.
Losses of £549.1 million ($747 million) led to an increase in debts. The losses were largely due to £440.3 million ($599 million) in non-cash impairment charges resulting from tax increases in the UK.
There was no mention of the potential takeover from Bally’s in the company’s earnings call. Instead, CEO Per Widerström said the group remains “firmly focused on delivering profitable growth, cash generation and strengthening the balance sheet.”
Tax Impact Not Yet Affecting Revenue
While the losses are primarily due to an expectation that tax increases will devalue the company in the future, CFO Sean Wilkins said the group had not yet seen any impact from the tax hike.
Wilkins stated that he believed the company would be able to withstand the negative impact of the tax hikes, with the levy on online casinos rising to 40% from 21%.
“We expect to see market consolidation, and we think that a long tail of players will get hit disproportionately hard by the tax implementation, and that will cause us to improve our market share,” Wilkins said.
In releasing the results, which had been delayed amid talk of the group’s sale, Widerström admitted that “the significant UK duty increases announced in November represented a fundamental shift in the economics of our largest market and will have a substantial impact across the regulated industry.”
Black Market Already Benefiting, Evoke Claims
While attempting to show that the tax increase could benefit the group compared to smaller operators, Evoke also said it is already seeing increased black-market penetration.
UK and Ireland online revenue declined 3%, driven by a 12% reduction in betting revenue. Evoke blamed horse racing bettors turning to black market sites for the decline in betting revenue.
Taxes on horse racing betting have not increased. But still, Widerström warned that it was tax increases that would drive more users to unregulated platforms.
“The UK taxation changes will drive more consumers towards illegal and untaxed operators that provide none of the customer protections of the regulated sector,” he stated. “We will continue to engage constructively with policymakers and regulators, but we strongly believe there must now be far greater urgency from the UK Government and the industry regulator in addressing the growth of the black market.”
The UK is taking some action to tackle illegal gambling and announced it will prohibit sports teams from partnering with unlicensed operators. Currently, several English Premier League (EPL) teams are sponsored by companies that are restricted in the UK, such as Stake, which sponsors Everton FC.
Company Faces Lawsuit From Disgruntled Users
While claiming the black market does not offer consumers the same protections as Evoke, the company is facing a lawsuit from users angry about how operators handled a glitch in its online casino platforms.
Thousands of users were allegedly credited with substantial jackpot wins before being told that these were invalid.
In Alberta, where 888 operates under an offshore license, one user thought he had won more than CA $1 million. In addition to the disappointment of not receiving the funds, he said 888 staff lied and misled him.
He has vowed to take legal action and is joining a group action brought by the legal firm Ellis and Jones against the company.
Internationally, Evoke increased revenue by 9%, fueled largely by growth in Italy and Denmark. Widerström said the performance showed signs that Evoke can diversify its business and reduce reliance on the UK market.
