UK Tax Hikes Hit Hard: William Hill Owner evoke Reports Flat H1 Revenue

The European gambling landscape is undergoing massive changes, and few companies feel the pressure of regulatory tightening as much as the evoke group. The owner of heritage brands like William Hill, Mr Green, and 888 released its figures for the first half of 2026. In an environment defined by fiscal severity, the company reported revenue of £887.5 million (approx. $1.2 billion). Although revenue remained stable compared to the previous year, political decisions in London are leaving deep marks on the balance sheet. Specifically, the hike in gambling duties in the UK core market, which took effect at the start of Q2, heavily impacted operations.

evoke's financial situation remains tight. While the company is making operational progress, taxes are eroding profits. Adjusted EBITDA fell by 10 percent year-on-year to £150.2 million. After taxes, the group recorded a reported loss of £70.2 million, almost identical to the previous year's figure. Amidst this turmoil, the acquisition by Ballys Intralot for a relatively low sum of £243.1 million is the central focus. This deal, announced in June 2026, is intended to steer the company into calmer waters but remains subject to shareholder and regulatory approval.

Numbers and facts

The report's details reveal a mixed bag. UK and Ireland online revenue grew by four percent, largely driven by a strong seven percent increase at William Hill. In contrast, the 888 brand intentionally pulled back. Management decided here to prioritize profitability and customer economics over aggressive acquisition of low-margin new customers. Internationally, regional differences were stark: while Italy grew by 21 percent and Denmark by 13 percent, evoke recorded weaker results in Spain and Romania. Overall, international revenue declined by two percent.

A major factor in the cost structure was the £46 million year-on-year increase in gaming duties, primarily resulting from UK tax hikes. evoke managed to offset more than half of these additional costs through marketing savings, improved promotional efficiency, and general operational cost reductions. However, net debt rose, with leverage increasing from 5.2x at the end of 2025 to 5.6x by June 30, 2026.

Background

The group's radical restructuring is most visible on the high street. evoke has already closed 270 iconic William Hill betting shops. In May alone, around 200 branches were shuttered as part of a program to improve the profitability of the remaining portfolio of over 1,000 locations. CEO Per Widerström believes the company is on the right track despite the headwinds and emphasizes the resilience of the business model.

"H1 demonstrated the resilience of the business in a significantly more challenging operating environment following substantial increases in gaming duties introduced across some of our core markets, most notably in the UK. We responded decisively, focusing on the areas within our control." - Per Widerström, CEO of evoke

The political burden is immense. It was revealed in November 2025 that taxes on online gaming in the UK would rise from 21 percent to 40 percent. Finance Minister Rachel Reeves also increased sports betting taxes from 15 percent to 25 percent. These massive jumps mean companies like evoke must reconsider their investments in regulated markets. Widerström previously warned that such moves could jeopardize thousands of jobs as the tax burden becomes unsustainable for small and medium-sized operators.

Why it matters for German players

For German customers of brands like Mr Green or William Hill, the developments at evoke serve as a signal. In Germany, the 2021 State Treaty on Gambling (GlüStV 2021) provides a strictly regulated framework. This includes the monthly deposit limit of 1,000 euros across all providers (monitored by the LUGAS system) and the one-euro stake limit per spin for virtual slot games. As evoke faces severe cost pressure, the group is increasingly focusing on markets with stable regulatory conditions and high profitability.

Players in Germany should ensure they only play with providers on the official whitelist of the Joint Gambling Authority of the States (GGL). evoke brands operating in Germany must comply with these strict rules. The parent company's financial strain could lead to tighter bonus calculations or a focus on high-loyalty existing customers rather than expensive new customer bonuses. However, those playing at a licensed GGL casino enjoy full legal protection, regardless of the operator's tax situation in the UK.

What it means for GGL-licensed casinos

The UK crisis clearly shows what happens when the tax burden exceeds the limit of economic viability. Industry experts warn that excessive taxes drive players to the black market. In Germany, the 5.3 percent tax on stakes is already very high. If providers like evoke cut marketing budgets to fund tax payments, regulated casinos lose visibility against illegal operators from Curacao or Malta that do not follow German law. For German GGL-licensed casinos, the evoke case is a warning: regulatory stability is the highest asset. Only if legal offers remain attractive can the channeling of players succeed.