Evoke, the parent company behind betting giants William Hill and 888, has announced “quick and decisive” measures, including shop closures and significant cost reductions, to counteract recent government changes to gambling taxes.
The move comes as the group continues to explore a potential sale.
The company initiated a strategic review last December, following Chancellor Rachel Reeves’ announcement of increased taxes for online gambling operators.
Evoke stated it has acted to mitigate the financial blow from the November Budget, implementing both retail betting shop closures and group-wide cost-saving initiatives.
Last year, the debt-laden firm warned that new online gaming duties and a fresh online sports betting tax would inflate its annual duty costs by as much as £135 million from 2027.
Evoke had previously indicated it anticipated offsetting approximately half of these tax increases through store closures, alongside potential “changes to the customer proposition” and supplier efficiencies.
While the exact number of sites already closed was not confirmed on Tuesday, the company had previously suggested that up to 200 locations could be shut down if gambling taxes were raised.
Per Widerstrom, chief executive of Evoke, said: “We were very disappointed with the outcome of the UK Budget in November that dealt a significant blow to both Evoke and the wider regulated industry.
“We continue to believe these tax increases will negatively impact the industry’s economic contribution, customer protection, and will ultimately serve to support further growth in the illegal black market.
“As a result of these significant UK tax increases, the board is assessing its strategic options, with a resolute focus on maximising shareholder value.”
He added: “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, and we will update shareholders on our progress and updated strategic plan in due course.”
In the Budget, the Chancellor raised remote gaming duty from 21 per cent to 40 per cent from April next year.
There will also be a new online sports betting duty of 25 per cent, which will cover all sports except horse racing, from 2027.
In an update on trading, Evoke said that fourth-quarter revenues were 4% lower on a constant currency basis compared with a year earlier, when trading was boosted by company-friendly sports results.
But it said the revenues of £464 million were 7 per cent higher than the previous quarter.
Betting revenues were the hardest hit in the quarter, down 22 per cent year-on-year, while gaming revenues lifted 9 per cent.
Despite this, the firm said it expects to report a rise in full-year revenue of about 2 per cent to £1.79 billion.
Shares in the firm fell 7 per cent in morning trading on Tuesday.
