Private equity takeover considered as Evoke faces tax and debt pressure

Financial pressure is intensifying and Evoke is reviewing its strategic options. The London-listed gambling operator is behind William Hill’s UK retail estate and online brands, including 888 and Mr Green.

In December, the company announced that it had launched a review to “maximise shareholder value”. Options being considered include selling parts of the business or a potential full sale of the group.

This comes as the operator faces a difficult combination: rising regulatory costs, debt and slowing growth.

UK tax changes hit earnings outlook

The UK government’s gambling tax reforms are one of the most significant challenges for Evoke.

From April 2026, remote gaming duty will increase from 21% to 40%. Analysts estimate the changes could reduce Evoke’s earnings by around £125m to £135m annually before mitigation measures.

The impact is particularly severe for Evoke. This is because the company generates roughly 40% of its revenue and EBITDA from its UK online division.

Deutsche Bank recently downgraded Evoke’s shares to “hold.” This is a warning that the tax changes would disproportionately affect the operator compared with many of its peers. The bank has cut its EBITDA forecasts for 2026 and 2027 by 12% and 18%, respectively.

Debt adds further pressure

Evoke has a significant debt burden. Net debt is expected to rise to around 5.1 times EBITDA in 2026 before gradually falling in later years. The company must also prepare for upcoming refinancing deadlines. This includes a $575m term loan due to be repaid by 2028.

Analysts say the combination of high leverage and regulatory pressure leaves the operator with limited financial flexibility.

With the company’s share price falling sharply over the past year, speculation about potential buyers has intensified.

Key financial figures for Evoke

The scale of financial pressure facing Evoke can be shown by looking at several key figures:

Private equity seen as potential buyer

Industry analysts believe private equity could be the most likely buyer if the company decides to pursue a full sale. Ben Robinson, managing partner at advisory firm Corfai, said private equity firms may be better positioned to manage Evoke’s financial structure than listed competitors. “Large-cap private equity can absorb the leverage, take the business private and do the heavy lifting,” Robinson said. This could involve restructuring operations, reducing costs and focusing investment on technology and international growth.

Break-up of the business also possible

Another potential outcome is the sale of individual business units. Evoke’s international operations, including its Italian online business and smaller European markets, are attractive assets.

However, its large UK retail estate of around 1,300  William Hill betting shops may prove harder to sell. Industry experts warn that some of these locations could face closure as operators adapt to rising costs and changing consumer behaviour.

For Evoke, the strategic review is a critical moment. The company must balance the need to reduce debt while preserving the long-term value of its brands and international operations.