Evoke pulls 2026 outlook as UK tax shock forces strategic rethink
William Hill UK and 888 owner, Evoke, has withdrawn its 2026 outlook after a dip in fourth-quarter revenue and a sharp change in the UK tax landscape forced the group back to the drawing board.
The operator said it is now reviewing its strategy after last year’s UK Budget significantly increased the cost of doing business for regulated gambling companies.
2026 guidance put on hold
Evoke confirmed this week that it will not provide formal guidance for 2026, saying the scale of the UK tax changes has effectively wiped out its previous medium-term plans.
The update came despite a strong improvement in profitability during 2025.
Fourth quarter revenue fell 3 percent year on year, which the group attributed to unusually favourable sports results in the same period last year that had boosted operator performance. Full-year revenue for 2025 is expected to reach around £1.79 billion, up roughly 2 percent on 2024.
Even so, management said the new UK tax regime has created too much uncertainty to offer forward guidance.
UK tax changes reshape the outlook
Under measures announced in the November Budget, Remote Gaming Duty will rise from 21 percent to 40 percent from April 2026. A new 25 percent duty rate for remote betting will follow in April 2027, with most online sports betting brought into the higher tax band.
Chief executive Per Widerström said the changes had delivered a major blow to both Evoke and the wider industry.
He warned that higher taxes risk reducing investment, weakening customer protection, and pushing more players toward unlicensed operators.
Evoke has previously estimated that the changes will add between £125 million and £135 million to its annual tax bill once fully implemented. Around £80 million of that impact is expected to hit in 2026 alone, before any mitigating action.
The company has also warned that job losses and reduced funding for UK sport, including horse racing, could follow if the tax increases go ahead as planned.
Strategic review takes centre stage
The tax shock comes at a difficult time for the group financially.
Evoke is carrying significant debt, with net borrowings of around £1.8 billion as of mid 2025. This has already drawn scrutiny from credit rating agencies, with S&P Global recently revising its outlook on the company to negative.
In December, Evoke’s board launched a strategic review that includes the possibility of selling the business, disposing of assets, or restructuring its finances.
That process remains ongoing, and the decision to pull 2026 guidance shows just how central the review has become to the company’s future.
Evoke’s share price has fallen by more than a third since the Budget announcement, although it has seen occasional rebounds on speculation around potential buyers or break up scenarios.
Trading performance across the business
Operationally, the picture is mixed. UK retail has shown signs of resilience, with betting shops returning to growth during 2025. Refurbishments and new gaming machines helped lift performance, and both the UK and Denmark delivered record quarterly revenues in the fourth quarter.
At group level, however, those gains were not enough to prevent an overall Q4 revenue decline.
Internationally, markets including Italy, Denmark and Romania continue to grow at a healthy pace, helping offset softer performance in some older parts of the business.
Online growth in the UK and Ireland remained modest during the year as Evoke reduced promotional spend on the 888 brand. Management says the shift is deliberate, aimed at improving profitability and attracting higher quality customers rather than chasing volume.
The group has also continued to refocus on its core markets following its exit from US consumer operations.
Early test case
For the wider industry, Evoke’s update is likely to be seen as an early test case for how deeply the new UK tax regime will affect operators with heavy domestic exposure.
Larger groups such as Flutter and Entain face bigger headline tax bills, but benefit from broader international diversification and stronger balance sheets. Evoke’s more limited flexibility leaves it particularly exposed to any further pressure on earnings.
Looking ahead, attention will centre on three key questions. How much of the tax hit Evoke can realistically offset through cost savings and product changes. Whether the strategic review results in a sale, break up, or refinancing. And how far UK operators can push pricing without accelerating customer movement toward unlicensed sites.
For now, Evoke has chosen to pause its forward outlook entirely, letting the strategic review run its course as the full impact of the UK’s tax reset becomes clearer.
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