Why Bally’s is interested in Evoke despite mounting risks

Bally’s interest in Evoke has raised eyebrows across the gambling industry. The owner of William Hill, 888 and Mr Green has spent years battling falling investor confidence. The brand has had mounting debt and worsening pressure in the UK market.

Yet Bally’s believes there is still value inside the business. The proposed takeover shows what’s happening in European gambling. Operators are increasingly prioritising profitability, regulatory resilience and international diversification over aggressive expansion alone.

Bally’s sees value where others see pressure

Evoke’s decline has been dramatic. Formerly known as 888 Holdings, the group spent years building one of Europe’s largest gambling portfolios through acquisitions. This includes the £1.95 billion purchase of William Hill’s non-US assets in 2022.

But the timing proved difficult. Bigger compliance costs, inflation and tougher gambling regulation have steadily eroded margins in online gambling in the UK. At the same time, heavy borrowing left the company exposed to climbing financing costs.

Evoke’s latest financial results underlined the pressure. Revenue increased modestly to £1.78 billion during 2025. But post-tax losses widened sharply to £541 million. Net debt also climbed to £1.86 billion despite EBITDA improvements.

For Bally’s, however, the attraction lies in scale across regulated European markets. The company already operates a sizeable UK online gambling business through Gamesys after acquiring it in 2021. That means this is less about entering Britain and more about consolidation.

Italy appears particularly important to Bally’s strategy. The country has stronger online gambling growth than the UK. It is one of Europe’s most valuable regulated markets. Romania and Spain also strengthen Evoke’s international profile.

The economics of UK gambling have changed

The proposed deal shows how sharply investor attitudes towards gambling operators have changed.

During the pandemic-era online gambling boom, investors rewarded operators for rapid expansion and market share growth. Large acquisitions were often viewed positively. This was backed by cheap borrowing in many cases. That’s now all changed.

Britain’s Remote Gaming Duty increased from 21% to 40% in April 2026. Further betting tax rises are expected next year. At the same time, affordability checks, financial risk assessments and stricter compliance requirements are raising operating costs across the sector.

For debt-heavy businesses like Evoke, those changes have become increasingly difficult to absorb. The issue is no longer whether the company owns recognisable brands. William Hill remains one of the UK’s biggest betting names. And Mr Green still carries value in online casino.

Instead, investors are questioning whether those assets can produce enough profit under modern UK gambling conditions to justify the leverage attached to them.

That helps explain why private equity firms appear to have stepped back despite Evoke’s lower valuation. Financial buyers would likely need to inject large amounts of cash while taking on significant debt and regulatory risk.

Bally’s still faces major risks

Despite Bally’s confidence, the proposed takeover carries substantial risks.

Combined debt across the enlarged business could reportedly exceed €3 billion. This creates pressure to refinance or reduce borrowing quickly. Industry analysts have also questioned whether Bally’s has the sportsbook expertise needed to improve the William Hill side of the business. This is because it has a stronger focus on casino and bingo operations.

Integration may prove challenging too. Combining multiple gambling platforms across different jurisdictions is rarely straightforward. If handled poorly, it can lead to customer disruption.

There are also likely to be regulatory hurdles. UK competition scrutiny could become a factor given Bally’s existing online casino position through Gamesys. At the same time, licensing approvals across multiple European markets would add complexity to the transaction.

Some analysts believe Bally’s could eventually sell parts of Evoke after completing a takeover. Italy and Mr Green are frequently mentioned as possible disposal candidates if the company looks to reduce leverage.

Still, the situation reflects a wider industry reality. Large gambling operators are no longer judged purely on size or market share. For investors, it’s now about prioritising sustainable margins, lower debt and the ability to withstand regulatory shocks.

Evoke’s struggles show how quickly the economics of European gambling have changed. Bally’s now believes it can succeed where previous consolidation efforts failed. Whether that confidence proves justified may become one of the industry’s defining tests over the next few years.