evoke, the operator behind William Hill, 888, and Mr Green, has called on the UK government to reconsider any potential increases in gambling taxes ahead of the upcoming autumn budget. The plea follows the closure of around 270 retail betting shops, which the company attributes to recent rises in gaming duty rates.
Revenue Impact and Market Concerns
In its third quarter trading update, evoke reported a 7% drop in group revenue, which fell to £406 million compared to the same period last year. The operator linked this decline to the closure of its retail outlets, highlighting the tangible effects of higher industry taxation on jobs and local economies. Additionally, the company noted that customer-friendly sports results at the start of the football season had a minor negative impact on year-over-year revenue growth, though revenue was broadly stable when adjusted for these factors.
Industry Awaits Autumn Budget Decisions
The UK government is expected to announce its autumn budget soon, with speculation around possible increases to machine games duty (MGD). Operators have consistently warned that further tax hikes could have significant consequences, particularly in light of previous increases to remote gaming duty. It remains unclear whether MGD will be raised, and if so, by how much. The industry will receive clarity when the budget is revealed in Parliament next week.
Acquisition by Bally’s Intralot Progresses
Meanwhile, evoke's acquisition by Bally’s Intralot continues to move forward. The process began in June, with terms offering evoke investors new Intralot shares in exchange for their holdings. The acquisition values evoke’s share capital at approximately £243.1 million, aiming to create a leading global gaming and lottery business. Both companies’ shareholders have approved the deal, and most regulatory approvals are in place. Completion is anticipated in late Q4 2026 or early Q1 2027.
Why This Matters for the Industry
For operators, affiliates, and suppliers, the outcome of the autumn budget could shape the future financial landscape of the UK gambling sector. Higher taxes may force further shop closures, job losses, and shifts in operational strategy. Affiliates and suppliers may also see changes in partnership opportunities and market dynamics if operators are compelled to cut costs or restructure.
Key takeaways
- evoke urges the UK government to reconsider further gambling tax increases.
- The company closed around 270 retail shops due to higher duty rates, impacting revenue and jobs.
- The industry awaits the autumn budget for clarity on potential tax changes.
- evoke’s acquisition by Bally’s Intralot remains on track, with completion expected in late 2026 or early 2027.