Evoke has confirmed it is reviewing several options for its future after its share price fell sharply and concerns over its growing debt increased. The news was first reported by the Earnings + More newsletter and later confirmed in a company statement. Evoke said it is looking at different ways to increase value for shareholders and secure the company’s long-term stability.

As part of this review, Evoke may consider selling the whole company or some of its business units. This supports recent speculation that the company could become a potential takeover target. Sky News reported that Evoke has already been exploring the sale of its Italian division, which could be worth between £350 million and £450 million.

Tax Increases Add to Pressure

The company’s problems have grown after the recent UK budget announcement. The government said taxes on online casinos and betting will rise to 40% and 25%, respectively. The 40% casino tax was higher than many experts expected and has caused concerns for companies that rely heavily on the UK market.

Evoke is especially affected because it took on a large amount of debt to buy William Hill and depends heavily on iGaming and UK operations. The higher taxes are expected to make it harder for the company to manage its finances and plan for future growth.

Analyst Warns of Risky Combination

David Brohan, head of gaming research at Goodbody, said the situation shows why it is important for gaming companies to be big and spread their business across different markets. Companies that rely too much on one market and have high debt are at risk when taxes or rules change.

Brohan also noted that Evoke’s cost-cutting plans are much bigger than those of competitors like Flutter and Entain, which suggests the company is already under pressure. “There comes a point where you have to spend money to grow,” he said. “Evoke seems to be reaching the stage where it is harder to find a winning strategy.”

Debt and Compliance Challenges Remain

Evoke’s large debt is still one of its biggest problems. Analysts say that by 2027, about half of its earnings could go just to paying interest. The company has also had compliance issues in the past, especially with its former operations in the Middle East, which could make a sale more complicated.

However, sources told NEXT.io that Evoke’s regulatory position has improved in recent years because it is now focused on fully licensed and regulated markets.

Despite the uncertainty, investors reacted positively. Evoke’s share price rose more than 10% to 24.75 GBX before settling at 23.41 GBX. The market seems hopeful that the strategic review could help the company become stronger in the future.