UK tax hikes prompt Evoke to scale back operations and cut jobs
Summary
Evoke plc, owner of William Hill and 888, said it will cut thousands of jobs and scale back UK investment after the government raised remote gaming duty and increased taxes on online sports betting. The new rates — remote gaming duty to 40% (from 21%) and sports betting tax to 25% (from 15%) — are expected to add about £125–135m a year to Evoke’s tax bill. The group has withdrawn its medium‑term financial targets and is implementing mitigation measures including reduced marketing, store closures and workforce reductions as it reassesses strategy ahead of the changes taking effect next April.
Key Points
- The UK raised remote gaming duty to 40% (from 21%) and online sports betting tax to 25% (from 15%).
- Evoke expects an extra annual tax charge of around £125–135 million and has withdrawn medium‑term guidance.
- Mitigation plans include cutting investment into the UK, reduced marketing spend, store closures and likely thousands of job cuts.
- Shares fell about 4.09% to 29.30p; the company’s market value is now under one‑tenth of its peak four years ago.
- Analysts warn other UK‑focused operators will face similar earnings pressures, while more internationally diversified firms may be less affected.
Why should I read this?
Quick and blunt: if you follow the UK gambling market, jobs or investment trends, this is major. Evoke is pulling back hard — that means fewer shops, fewer hires and a bigger hit to UK‑centred operators. We’ve done the reading so you don’t have to; this tells you what will change and why it matters now.
Context and Relevance
The tax changes were set out in the Autumn Budget and are estimated to be a c.£1.1bn hit to the regulated gambling sector. For a business concentrated in the UK online market like Evoke, the measures materially change the economics, forcing higher leverage and swift strategy changes. The story is relevant to investors, employees, suppliers and policymakers monitoring sector stability and competition between regulated and unregulated operators as duties rise.