Evoke Explores Options Including Possible Sale

Evoke has begun a strategic review as pressure mounts around higher UK gambling taxes and renewed questions about the future structure of the business. The operator told the London market that all options will sit on the table as it considers how to create value during a challenging period.

Good to Know

• Review may include a sale of the group or certain business units
• Morgan Stanley and Rothschild are advising on the process
• Review follows tax hikes set out in the UK autumn budget

Evoke explained that the review will analyse a wide set of alternatives, with a possible sale among them. The company also stressed that no deal is guaranteed. Morgan Stanley and Rothschild are now advising while the process unfolds. Evoke said future updates will land only when required.

Links to Italy surface as tax pressure grows

Talk of a sale surfaced weeks earlier when Sky News reported on 25 November that Evoke had prepared plans to look for a buyer for its operation in Italy. That report suggested the Italian business could draw hundreds of millions of pounds and help offset the impact of rising tax in the UK. Evoke did not comment at the time.

The report arrived just ahead of the UK autumn budget. The new fiscal plan pushed Remote Gambling Duty from 21 percent to 40 percent beginning in April. A general betting duty for remote betting will also rise from 15 percent to 25 percent in 2027.

Per Widerstrom, CEO of Evoke, issued strong criticism following the announcement. He said the higher rates were “highly damaging” for the UK economy and for players.

He said:

“As an industry, we have consistently warned of the significant impact on jobs, investment in the UK and player protection that these changes would have. Yet sadly the government chose not to listen. Proposals are ill thought through, counterproductive and highly damaging. It is clear these changes will significantly harm businesses, employees and customers.”

Strategic review tied to changing tax costs

When Evoke confirmed the review, it pointed to its 26 November statement on the budget as well as “recent media speculation,” reinforcing the connection between fiscal changes and the reassessment of group structure. The company did not identify which assets or regions could be offered for sale.

With advisers now in place, Evoke said it will continue evaluating all alternatives while shareholders wait for clarity on the future of the group.

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