Evoke, the parent company of major betting brands William Hill and 888, has confirmed a series of retail shop closures and cost-cutting measures in response to significant tax increases announced in the UK budget. The firm stated it has acted "quickly and decisively" to mitigate the financial impact, which could see its duty costs rise by up to £135 million annually from 2027.
Strategic Review and Mitigation Plans
The company launched a strategic review in December 2025 after Chancellor Rachel Reeves unveiled tax hikes targeting online gambling firms. In an update on Tuesday 27 January 2026, Evoke revealed it has already begun implementing mitigation plans, including the closure of retail betting shops that are no longer sustainable and broader group-wide cost savings.
While the exact number of sites closed was not confirmed, the company had previously indicated that up to 200 locations could be shut if gambling taxes were raised. These closures are part of a broader effort to offset approximately half of the tax impact, alongside potential changes to customer offerings and supplier savings.
Tax Changes and Financial Impact
The budget changes include an increase in remote gaming duty from 21% to 40%, effective from April 2027, and the introduction of a new online sports betting duty of 25% for all sports except horse racing, also starting in 2027. Evoke, which is carrying significant debt, warned last year that these adjustments would substantially increase its annual duty costs.
Per Widerstrom, Chief Executive of Evoke, expressed disappointment with the budget outcome, stating it dealt "a significant blow" to both the company and the regulated industry. He emphasised concerns that the tax hikes could negatively affect the industry's economic contribution, customer protection, and potentially drive growth in the illegal black market.
Trading Performance and Future Outlook
In a trading update, Evoke reported fourth-quarter revenues of £464 million, which were 4% lower on a constant currency basis compared to the previous year but 7% higher than the previous quarter. Betting revenues saw a notable decline of 22% year-on-year, while gaming revenues increased by 9%.
Despite these mixed results, the company expects to report a full-year revenue rise of approximately 2% to £1.79 billion. However, shares in Evoke fell by 7% in morning trading on Tuesday, reflecting investor concerns over the tax changes and strategic uncertainties.
Widerstrom added that the board is actively assessing strategic options, with a focus on maximising shareholder value, including a potential sale of the group. He confirmed that shareholders will be updated on progress and the updated strategic plan in due course.
