Evoke Cites Black Market Operators As Threats To Its UK Business

Evoke announced an improvement in profitability for 2025, but results show increased  pressure on its UK business by black market growth. The William Hill and 888 operator pointed out illegal platforms and sweeping tax reforms as emerging threats.

Management said the issue is most visible in horse racing, where unlicensed platforms are attracting customers with fewer restrictions. The company also recorded a 3% drop in UK online revenue for the year.

Evoke received a £440m impairment charge, reporting a post-tax loss of £549.1m, up from £221m the previous year. Conversely, Adjusted EBITDA rose 14% to £356.2m, supported by cost control, efficient marketing spend, and stronger operating leverage.

UK tax increases force a strategic reset across operations and retail footprint

The UK government’s decision to increase gambling duties has forced a strategic reset. Evoke said the tax change has fundamentally altered the economics of operating in its largest market. In response, the board launched a full strategic review and closed around 270 shops deemed unsustainable while targeting at least 50% mitigation of the duty impact within the first full year. 

Net debt stands at £1.86bn, and the associated interest burden puts pressure on the company to balance ongoing investment with operating in a restrictive regulatory environment. At the same time, industry observers expect the tax increase to widen the price gap between licensed and unlicensed operators.

UK segment shows ongoing weakness with sports betting under the most pressure

UK online sports betting declined over the year, affected by tough comparatives from Q4 2024 results and black market operations. Gaming within UK online was more stable due to William Hill. But this was offset by a planned slowdown at 888, where management focused more on profitability than volume.

Retail revenue dipped 1% overall, while gaming revenue within shops rose by 5% following the rollout of new machines. Evoke said it continues to gain market share in this segment.

International growth offsets domestic challenges and supports overall performance

International online revenue increased by 9% with Italy and Denmark delivering record results. The acquisition of Winner in Romania boosted growth, though some softness was reported in Spain and other regions. 

Chief executive Per Widerström said: “Throughout 2025 we delivered consistent operational progress resulting in a more efficient, focused and disciplined business delivering improved marketing returns, stronger cost control, enhanced operating leverage, and a step-change in underlying profitability.”

“However, 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,” He added.

“We have acted decisively to mitigate the impact of these changes and protect long-term shareholder value, including initiating a strategic review and implementing significant operational actions across the business.”

Early 2026 trading reflects stabilisation efforts but mixed regional performance

Trading in early 2026 has met management’s expectations, with group revenue rising 1% on a reported basis and 2% on a like-for-like basis excluding retail closures.

UK online showed signs of recovery, increasing 5% and exceeding expectations. This owed to 8 per cent growth within William Hill. International revenue declined 2%, with gains in Italy and Denmark offset by weaker performance in other markets.

Widerström said: “In Q1 2026 we have traded in line with our expectations. While the trading environment is challenging, we remain firmly focused on delivering profitable growth, cash generation and strengthening the balance sheet.”

The company has not issued forward guidance as the strategic review continues. 

Evoke enjoyed a profitable year in 2025, particularly due to growth within the William Hill and International online segments. However, the company stated that the expansion of black markets is affecting its UK operations. Unlicensed platforms are getting more popular among players due to increased taxes and duties.