Evoke, the owner of William Hill, reported a £46 million increase in gaming duties for the first half of 2026, largely due to a tax increase in Britain. This added pressure to the company's earnings, which saw adjusted EBITDA fall by 9.5% to £150.2 million for the six months ending June, compared to the previous year.
The company stated that the most significant change impacting its performance was the rise in gambling taxes in its primary markets, particularly the UK, as well as in Romania and Italy. In the UK, the remote gaming duty increased from 21% to 40% starting in April. Evoke, with two-thirds of its revenue originating from the UK, was more exposed to these tax changes than its competitors.
In response to the tax increases, Evoke implemented cost-saving measures, including reduced marketing spend and other cost-cutting initiatives, which offset over half of the increased costs. However, the substantial tax hike, announced by the government in November 2025, prompted a strategic review that ultimately led to a £243 million takeover agreement with Bally's Intralot in June.
During the first half of 2026, Evoke's revenue remained flat at £887.5 million. Excluding the approximately 270 shops closed since the prior year, revenue was up by 2%. The company closed around 200 betting shops in May alone. Across Britain and Ireland, the number of open shops decreased by 21.4% to 1,024 by the end of the period, down from 1,302 a year earlier. Retail revenue in these regions fell by 2.6% to £245.6 million due to these closures, though like-for-like revenue increased by 4%.
William Hill contributed to a 7% rise in gaming revenues, while the 888 brand experienced a decline. Evoke's international operations faced challenges, with increased gaming duties in Romania and a recession impacting performance, though growth in Italy and Denmark partially offset these issues.
The firm reported a loss after tax of £70.2 million, which was largely unchanged from the previous year. Per Widerström, chief executive of Evoke, acknowledged the challenging operating environment created by the significant increases in gaming duties.
The acquisition by Bally's Intralot is anticipated to be completed in the fourth quarter of 2026 or the first quarter of 2027. Despite a challenging year, Evoke shares saw a slight increase of 0.88% on Wednesday morning, though they have declined by over 25% in the past year. Analysts note that the Bally's Intralot deal is crucial for Evoke, given its substantial net debt approaching £1.9 billion and leverage at 5.6 times, with higher taxes making a turnaround more difficult.