Evoke is considering selling its online gambling business in Italy as the UK prepares to introduce a big tax increase on betting companies. Sky News reports that the company has brought in Morgan Stanley to explore possible options. Sources say this is only a backup plan to support Evoke’s finances if the new tax puts too much pressure on the business.

The UK government announced in its latest budget that online gambling operators will face a 40 percent tax from April next year. The industry has warned that this rise could cause serious problems for online platforms and retail betting shops.

Tax Pressure Could Trigger a Sale

People familiar with the matter told Sky News that Evoke will only sell its Italian division if the new tax rise is big enough to seriously affect the company’s future. Early estimates show that a sale could bring in several hundred million pounds. With Evoke’s strong position in Italy, major European gambling companies would likely be interested in buying the business.

The review follows months of uncertainty. Reports suggested the new gambling taxes could bring the UK Treasury between one and three billion pounds a year. Many operators say increases of this size could disrupt the industry, raise costs and force companies to rethink their long term plans.

Impact Across the UK Gambling Sector

Evoke, along with other major operators including Betfred, Flutter Entertainment and Entain, has warned that higher taxes may lead to widespread betting shop closures across the UK. The company also said that tougher rules could unintentionally push customers toward unlicensed websites. Industry groups have repeatedly asked policymakers to consider this risk before introducing stricter measures.

A study by EY for the Betting and Gaming Council supported these concerns. The report estimated that the tax proposals promoted by some campaign groups could put more than 40,000 jobs at risk. It also warned that billions of pounds in stakes could shift to the black market and that the sector’s contribution to the UK economy could fall by over three billion pounds.

Italy Remains a Key Market for Evoke

Italy is one of the four main markets in Evoke’s international online division, along with Spain, Denmark and Romania. Recent financial records show that this division delivers nearly one third of the company’s total revenue and around half of its EBITDA. The Italian unit has continued to grow due to 888casino’s exclusive content, better supplier partnerships and products adapted for local players. In its latest quarterly update, Evoke reported more gains in Italian casino market share.

Evoke has said it already pays a significant amount in taxes, contributing about 330 million pounds last year, which is more than 60 percent of its UK profits.