(AsiaGameHub) – Evoke published its full-year 2025 financial results on Thursday. The gambling group notched a 2% rise in revenue, but impairment charges tied to tax increases in the UK led to heavy losses and higher debt levels ahead of the group’s potential sale.
The company that owns betting brands William Hill and 888 generated total revenue of £1.78 billion ($2.42 billion). Net debt, however, climbed to £1.86 billion ($2.53 billion), up from the 2024 level of £1.79 billion.
A total loss of £549.1 million ($747 million) drove the increase in overall debt. The losses are overwhelmingly caused by £440.3 million ($599 million) in non-cash impairment charges stemming from the UK’s tax hikes.
The potential takeover of Evoke by Bally’s was not referenced at all during the company’s earnings call. Instead, CEO Per Widerström said the group remains “firmly focused on delivering profitable growth, cash generation and strengthening the balance sheet.”
Tax Impact Has Not Yet Affected Revenue
While the losses are primarily driven by expectations that tax increases will lower the company’s future value, CFO Sean Wilkins said the group has not yet experienced any impact from the tax hike.
Wilkins stated he believes the company can withstand the negative impact of the tax hikes, which have lifted the levy on online casinos from 21% to 40%.
“We expect to see market consolidation, and we think that smaller late-tier players will get hit disproportionately hard by the rollout of the new tax, and that will allow us to grow our market share,” Wilkins said.
The release of Evoke’s results was delayed amid ongoing speculation about the group’s sale, and Widerström admitted that “the significant UK duty increases announced in November represented a fundamental shift in the economics of our largest market and will have a substantial impact across the regulated industry.”
Black Market Already Benefiting From Changes, Evoke Claims
While Evoke argues the tax increase could benefit the company relative to smaller operators, it also confirmed it is already seeing growing black-market penetration in its core market.
Online revenue in the UK and Ireland fell 3%, pulled down by a 12% drop in betting revenue. Evoke blamed the decline in betting revenue on horse racing bettors shifting to unregulated black market sites.
Taxes on horse racing betting have not been increased. Even so, Widerström warned that broader tax increases will push more users to unregulated platforms.
“The UK’s tax changes will drive more consumers towards illegal and untaxed operators that provide none of the customer protections of the regulated sector,” he stated. “We will continue to engage constructively with policymakers and regulators, but we strongly believe there must now be far greater urgency from the UK Government and the industry regulator in addressing the growth of the black market.”
The UK is taking steps to crack down on illegal gambling and has announced it will ban sports teams from partnering with unlicensed operators. Currently, several English Premier League (EPL) teams are sponsored by companies that are restricted in the UK, such as Stake, which sponsors Everton FC.
Company Faces Legal Action From Dissatisfied Users
While Evoke claims the black market does not offer consumers the same protections as its regulated platform, the company is being sued by users angry over how it handled a glitch on its online casino platforms.
Thousands of users were allegedly credited with large jackpot wins before being notified that those wins were invalid.
In Alberta, where 888 operates under an offshore license, one user believed he had won more than CA $1 million. In addition to the disappointment of not receiving the funds, he said 888 staff lied to and misled him.
He has vowed to pursue legal action and is joining a group claim brought against the company by law firm Ellis and Jones .
Internationally, Evoke grew revenue by 9%, driven largely by strong expansion in Italy and Denmark. Widerström said the performance shows early signs that Evoke can diversify its business and cut its reliance on the UK market.
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