Evoke, the owner of William Hill and the 888 online casino brand, has agreed to a £243 million takeover by the Greek casino and lottery operator Bally's Intralot. The deal comes after two months of negotiations with the Athens-listed company, which has extensive international operations, including in the United States.
Background of the deal
Evoke, previously known as 888 Holdings, paid £2.2 billion to acquire William Hill's network of 1,400 high street bookmakers in 2021. Since then, the company's shares have plummeted by 90%, and it has accumulated net debt of approximately £1.8 billion, with a market value of just over £180 million.
The companies cited the UK government's announcement in November of a significant increase in remote gaming duty, from 21% to 40%, as a trigger for the deal. This change created a "material shift in the UK operating environment" that will "create meaningful dislocation across the competitive landscape," they said.
Market reaction
Shares in London-listed Evoke surged by more than 12.5% in early trading as investors welcomed the takeover. Intralot stated that it continues to believe the UK is a highly attractive geography and that the current market dislocation presents a significant opportunity for consolidation.
Evoke's chief executive, Per Widerström, had previously warned that the tax changes would cost the business up to £135 million annually. In December, the company appointed Morgan Stanley and Rothschild to conduct a strategic review aimed at maximizing shareholder value.
Statements from leadership
Mark Summerfield, chair of Evoke, said: "Following the announcement of the strategic review in December, we have been resolutely focused on how best to maximise value for our shareholders in light of the significant UK duty changes and the constraints posed by the Evoke Group's existing capital structure." He added that the deal represents "the most attractive and deliverable outcome for Evoke shareholders."
Soo Kim, chair of Bally's, expressed confidence that the deal will "deliver substantial benefits for both Intralot and Evoke shareholders." Intralot provides technology for 12 state lotteries in the US and operates in Europe, South America, North Africa, Southeast Asia, Australia, and New Zealand.
Operational challenges
Evoke has faced a series of management issues in recent years. In 2023, it removed its chief executive and suspended VIP customer accounts in the Middle East amid an internal investigation into anti-money-laundering failures. In 2022, the company agreed to pay a £9.4 million fine, then the third highest in British gambling regulation history, over failings that allowed customers to amass huge losses during the COVID-19 pandemic.
Last month, Evoke announced it would close about 200 William Hill betting shops starting in May, citing cost pressures from the government's tax rises.
