Evoke Confirms £46m Tax Hit as £243m Takeover Nears

Evoke plc (LON: EVOK), the owner of William Hill, said earlier today that the UK’s higher gambling duty cost it £46m in the first half of 2026, confirming the pressure that had already pushed its board to accept a £243.1m takeover by Bally’s Intralot.

Shares in Evoke traded at 45.6p during Wednesday’s session, up 0.2% from Tuesday’s close of 45.5p, and within a day’s range of 45.0p to 45.9p. That leaves the stock far below its 52-week high of 65.5p but well above its 52-week low of 19.76p.

The interim figures, published today, show underlying earnings for the six months to June 30 fell around 10% to £150.2m. The culprit was the UK’s remote gaming duty, the tax on online casino revenue, which the Treasury raised from 21% to 40% from late 2025. The increase was announced in November 2025, alongside a rise in online sports betting duty from 15% to 25% due in April 2027.

Chief executive Per Widerström had already warned the duty change could drain up to £135m a year from Evoke’s bottom line, prompting the company to withdraw its medium-term financial targets. That warning is why, on 5 June, the board agreed a recommended all-share takeover by Bally’s Intralot, a gaming and lottery group, valuing Evoke at 52p a share, or £243.1m, with a capped £117.1m cash alternative. Against Tuesday’s 45.5p close, the 52p offer represents a premium of around 14%.

The muted reaction to today’s results suggests the tax drag and the takeover terms are already reflected in the shares, leaving the stock trading more on deal-completion risk than on Evoke’s underlying earnings power.

The Shaked family, Evoke’s founders holding roughly 19.2% to 20.6% of the shares, has given irrevocable undertakings covering 29.1% of the company, and the deal is expected to close in the fourth quarter of 2026 subject to a binding shareholder vote.