Evoke, the London-listed company behind William Hill and 888 Casino, is exploring a potential sale or breakup of its business.
The announcement comes after the group warned it could face a £135 million tax increase following last month’s UK budget.
In a statement to investors, Evoke confirmed it had appointed Morgan Stanley and Rothschild to assess strategic options.
This development comes four years after the company, then known as 888 Holdings, acquired William Hill’s network of 1,400 bookmakers for £2.2 billion.
Since that acquisition, shareholder value has collapsed by more than 90%, dropping to under £100 million.
Despite this, Evoke shares surged nearly 9% on the news of a potential sale or breakup.
Industry insiders remain cautious, suggesting bondholders may step in to control the business and strip assets such as high street William Hill shops to recover debts.
Evoke, headquartered in Gibraltar, carries net debt of £1.82 billion.
Last month, following Chancellor Rachel Reeves’ announcement of higher duties on online sports betting and casino games, Evoke projected an annual tax burden of up to £135 million.
The company withdrew its medium-term financial targets and warned the increase could drive players to the black market, reduce tax revenue, cost thousands of jobs, and decrease investment in UK sports.
Evoke stated it would now “undertake a review of the company’s strategic options, which will include the consideration of a range of potential alternatives to maximise shareholder value, including, but not limited to, a potential sale of the group, or some of the company’s assets and/or business units.”
The budget raised online gaming duty from 21% to 40%, while online sports betting duty increased from 15% to 25%, with horse racing exempt.
Founded in the late 1990s by Israeli web technology experts, Evoke has also faced internal challenges.
In 2023, the company removed its CEO and suspended VIP customer accounts in the Middle East after failing to follow anti-money laundering protocols.
The company acknowledged that certain “best practices have not been followed” regarding “know your client” and anti-money laundering requirements.
The disclosure sent shares down more than 25% in a single day.
In 2022, Evoke agreed to pay a £9.4 million fine for multiple regulatory failures that led to customers losing large sums during the Covid pandemic.
In 2017, the Gambling Commission fined 888 a record £7.8 million for allowing over 7,000 self-excluded gamblers to access accounts.
Evoke’s ongoing underperformance triggered a failed takeover attempt in 2023 by Kenny Alexander and Lee Feldman, former executives at Entain.
The deal collapsed amid legal disputes, with Alexander and Feldman claiming the Gambling Commission breached privacy by prompting Evoke to issue a market update about the takeover.
The update revealed the regulator was reviewing Evoke’s license over alleged misconduct during Alexander and Feldman’s tenure at Entain.
Both men have since faced charges of conspiracy to bribe and conspiracy to defraud.
