William Hill owner Evoke to close 270 shops as losses widen on tax hit

The owner of William Hill will close around 270 betting shops after a review of its retail estate, as it seeks to offset higher UK gambling taxes that pushed annual losses sharply higher.

Evoke, which also owns the 888 brand, reported that pre-tax losses more than doubled to £549.1 million ($741 million) in 2025, from £220.9 million ($298 million) a year earlier, driven largely by UK tax increases and a £440.3 million ($594 million) impairment charge.

The shop closures, targeting underperforming locations, are expected to result in hundreds of job losses, though the company did not specify how many roles are at risk.

Chief Executive Per Widerström said the new tax regime marked a major turning point for the sector. “The significant UK duty increases announced in November represented a fundamental shift in the economics of our largest market and will have a substantial impact across the regulated industry,” he said.

Evoke has taken steps to cushion the impact, including cost reductions and a strategic review launched as it grapples with rising debt and operating pressures.

“We have acted decisively to mitigate the impact of these changes and protect long-term shareholder value, including initiating a strategic review and implementing significant operational actions across the business,” Widerström said.

The company is also in talks over a potential takeover by Bally’s Intralot in a deal valuing the business at about £225.3 million, as it looks for options to address its roughly £1.9 billion net debt.

Despite reporting a 2% rise in revenue to £1.78 billion and a 43% increase in EBITDA to £301.3 million, Evoke remains loss-making.

In the UK and Ireland, revenue fell 2% to £1.17 billion, reflecting declines across both retail and online segments. The company said the closures are also part of a broader shift towards a more efficient retail footprint as customer behaviour moves online.

“We have done a very in-depth review of our retail estate, and we identified 230 shops that we are closing,” Widerström said. “We have some fantastic 1,000+ shops that are providing excellent service and entertainment to our customers, and obviously, with this more efficient retail estate, we have sufficiently improved the long-term sustainability, cash flow and profitability.”

Finance chief Sean Wilkins said the company expects to mitigate around half of the tax impact and has so far seen limited immediate effects from the new regime. “In the first 30 days, the truth is we’ve not seen any impact. The company is pleased with the way UK&I online is performing,” he said.

International operations provided some support, with revenue rising 9.3% to £606.9 million and EBITDA increasing 49.2% to £175.4 million, driven by growth in markets including Italy, Denmark and Romania.

However, Wilkins flagged challenges in Romania, where higher taxes have fuelled unregulated competition. “Romania is seeing strong black market growth following tax increase, and as regulated operators, this is hurting us,” he said.

Looking ahead, Wilkins said: “Our focus for 2026 is very much on cash generation and balance sheet strength.”