The acquisition of Evoke by Bally’s Intralot has gained significant momentum as over 99% of Evoke shareholders voted in favor of the deal. This approval comes despite rising financial uncertainties surrounding Bally’s Corporation, with expectations for the transaction to finalize by late 2026 or early 2027.
During a court meeting held on Monday, an overwhelming 99.91% of the scheme shares were cast in support of the acquisition, totaling approximately 268.2 million shares, while only 236,504 shares were opposed. This favorable vote accounted for 59.55% of Evoke’s total issued share capital.
Additionally, a separate special resolution necessary for executing the acquisition received 99.63% backing, with 268.4 million shares voting in favor and fewer than one million against. This marks a significant step forward for Bally’s, which owns well-known brands like William Hill and 888, as it aims to close the deal in the fourth quarter of 2026 or the first quarter of 2027.
However, Bally’s is currently under increased scrutiny regarding its financial stability and ability to secure further funding. Shares of the company dropped nearly 30% on Monday after it revealed liquidity issues and concerns over debt covenants in its delayed second-quarter report.
In its latest earnings report, Bally’s announced a revenue of $792.2 million for the second quarter, reflecting a 20% increase year-on-year. Nonetheless, SEC filings pointed to significant challenges affecting the company’s financial health.
To address liquidity pressures, Bally’s is actively seeking new financing options, which may include asset sales, equity, and additional debt. Without new funding, the company anticipates it may not meet necessary liquidity levels and could violate its leverage covenants within the next year.
Bally’s has indicated that these circumstances raise “substantial doubt” regarding its ability to continue as a viable business.
Recently, Bally’s signed a non-binding term sheet for a pre-construction loan related to its ambitious $4 billion casino project in the Bronx. The company has also engaged in discussions with a potential equity investor.
Despite the financial challenges, Bally’s second-quarter revenue grew by 20%, with total segment Adjusted EBITDAR increasing from $173.2 million to $187.5 million.
On the other hand, Evoke had previously expressed concerns regarding the uncertainties tied to its potential new owner. Just days before the shareholder vote, Evoke highlighted two major uncertainties that could impact its operations post-acquisition.
The first uncertainty pertains to Bally’s Intralot’s capability and intentions to manage Evoke effectively. The second revolves around the implications if the acquisition does not go through, as Evoke would need to achieve a sustainable and significantly improved level of profitability to refinance its debts, which it described as a considerable challenge.
Evoke currently has borrowings totaling around £1.84 billion ($2.44 billion), with net leverage rising from 5.2x at the end of 2025 to 5.6x as of June 30. The company reported having £105.6 million in cash and about £150 million in total liquidity.
Despite these challenges, Evoke’s directors expressed a “reasonable expectation” that the company can maintain operations through September 2027. Following the shareholder approval, Evoke confirmed that several antitrust and regulatory conditions for the acquisition have been met, although the transaction still requires final court approval.