Evoke's Strategic Response to UK Gambling Tax Increases

Evoke, the parent company of betting giants William Hill and 888, has announced significant measures, including the closure of retail betting shops, in response to increased gambling taxes introduced by Chancellor Rachel Reeves in the November Budget. The company is facing a potential annual cost increase of up to £135 million starting in 2027 due to these tax changes, prompting a strategic review and cost-cutting initiatives.

William Hill to shut 'as many as 200' shops after budget tax hike, owner confirms

The November Budget raised the remote gaming duty from 21% to 40%, effective April next year, and introduced a new online sports betting duty of 25% applicable to all sports except horse racing from 2027. These changes are expected to substantially increase Evoke's operational costs, leading the company to consider closing up to 200 betting shops as part of its mitigation strategy.

William Hill owner to close shops after ‘significant blow’ from Rachel Reeves’ Budget

Evoke's Chief Executive, Per Widerstrom, expressed disappointment with the Budget's outcome, stating that the tax increases would negatively impact the industry's economic contribution and customer protection while potentially fostering growth in the illegal gambling market. In light of these challenges, Evoke is implementing a series of cost-saving measures, including the closure of unsustainable retail stores and exploring changes to its customer offerings and supplier agreements.

William Hill owner will act ‘quickly and decisively’ close retail stores amid Reeves Budget - London Business News

In a recent trading update, Evoke reported a 4% decline in fourth-quarter revenues compared to the previous year, with betting revenues down 22%. Despite this, the company anticipates a slight overall revenue increase for the year, projecting approximately £1.79 billion. However, shares in Evoke fell by 7% following the announcement of store closures and the disappointing financial results.

William Hill to shut 'as many as 200' shops after budget tax hike, owner confirms

The gambling industry has reacted strongly to the tax increases. The Betting & Gaming Council described the changes as a "devastating hammer blow" for the sector. Meg Hillier, chair of the Treasury select committee, defended the Chancellor's decisions, emphasizing the cultural contributions of certain parts of the gambling industry, such as racecourses and bingo halls. In contrast, Widerstrom and other industry leaders have voiced concerns about the long-term implications of these tax hikes on the regulated market.

Major UK bookmaker shutting betting shops across Britain

Evoke's leadership has reiterated its commitment to maximizing shareholder value amid these challenges. Widerstrom stated, “We have moved quickly and decisively to execute on our mitigation plans including the closure of retail stores that are no longer sustainable as well as broader cost savings.” The company is also considering a potential sale of the business as part of its strategic review.

Major UK bookmaker shutting betting shops across Britain

As Evoke navigates these financial pressures and operational changes, the company will continue to assess its strategic options. The outcome of this review, including potential sales or restructuring, will be closely monitored by investors and industry stakeholders as the company adapts to the evolving regulatory landscape.

William Hill owner confirms shop closures after tax blow in budget