UK Tax Changes Prompt Evoke to Reassess Italian Presence

UK Tax Changes Prompt Evoke to Reassess Italian Presence

Evoke plc, the parent company of William Hill and 888casino, is assessing a divestment of its Italian operations in response to proposed tax changes in the United Kingdom. The move is part of a more exhaustive strategic review as the company navigates a period of fiscal uncertainty and potential restructuring. While the decision to sell is not final, Evoke has engaged Morgan Stanley to gauge interest from potential buyers, signaling a proactive approach to safeguarding its financial stability.

The context for this consideration is the UK government’s 2025 Budget, announced by Chancellor Rachel Reeves, which includes substantial tax increases targeting the gambling sector. For Evoke, already managing a significant debt load, these measures could amplify operational pressures. Analysts note that the proposed tax framework may make it difficult for some operators to maintain current levels of retail activity, with projections indicating potential closures of 120 to 200 betting shops across the UK. Such reductions could place up to 1,500 jobs at risk, adding social and economic implications to the financial challenges.

Italy has emerged as a core component of Evoke’s international operations, alongside Spain, Denmark, and Romania. In the third quarter of 2025, Evoke’s international segment accounted for nearly one-third of the group’s overall revenue and contributed approximately half of its consolidated EBITDA. Within this portfolio, Italy provides consistent returns and plays a pivotal role in supporting the broader balance of the company’s financial performance. This underscores the significance of any potential divestment, suggesting that such a step would be taken only if UK fiscal developments substantially erode domestic viability.

The Italian market, regulated and relatively stable, has long been a point of interest for European gambling operators. Should Evoke opt to sell, it could create opportunities for competitors seeking to strengthen their presence in the region. At the same time, a withdrawal by a well-established operator like William Hill could disrupt employment, marketing strategies, and consumer confidence. This potential ripple effect illustrates the interconnected nature of the European gambling landscape, where decisions in one jurisdiction influence market dynamics elsewhere.

Evoke’s engagement with Morgan Stanley reflects a precautionary strategy rather than an immediate intent to sell. By assessing market appetite and potential valuation, the company is preparing for a scenario where UK taxation could make continued domestic operations less sustainable. The review highlights the broader challenge for operators balancing local regulatory demands against international growth and profitability.

CEO Per Widerström has emphasized the importance of operational efficiency and the stability of international markets in navigating the current landscape. His statements point to careful calibration of priorities, as Evoke weighs the long-term value of retaining high-performing foreign assets against the pressures from domestic fiscal policy. Industry observers are following these developments closely, interpreting the company’s moves as indicative of the broader health of the European gambling sector under evolving regulatory conditions.

The potential sale of Italian assets would mark a significant strategic adjustment, reflecting not market performance in Italy but the influence of UK policy decisions. For the sector, it signals how tax changes in a single jurisdiction can prompt multinational operators to reconsider portfolio composition, resource allocation, and market positioning. Evoke’s review, whether it results in a sale or not, underscores the need for adaptability in an environment where political and fiscal variables increasingly intersect with operational strategy.