US Casino Operator Nears Takeover of William Hill Owner Evoke

An American casino operator is reportedly close to securing a private rescue of the heavily indebted owner of William Hill. Bally’s Corporation, based in Rhode Island and recognised for its sponsorship of Nottingham Forest Football Club, is in negotiations to acquire Evoke, formerly known as 888 Holdings. The betting and gaming company has been grappling with significant financial challenges, including a staggering £1.7 billion in debt.

Bally’s has been granted preferred bidder status in informal discussions, with a potential announcement of a rescue deal expected imminently, assuming terms can be successfully negotiated. Sources have cautioned that the negotiations remain delicate and no agreement is guaranteed.

Evoke’s financial woes began with its £2.2 billion purchase of the non-US operations of William Hill in 2021. During a competitive bidding process, Evoke outbid private equity firm Apollo to secure one of the United Kingdom’s most recognised betting brands, a name that has been in existence since 1934.

The company is currently dealing with a market valuation that has plummeted to approximately £160 million, while it owes lenders about £1.8 billion. Following increasing financial pressure, Evoke formally began a sale process in December by appointing Morgan Stanley and Rothschild to explore strategic options aimed at maximising shareholder value.

The group’s issues have been exacerbated by the recent increase in betting taxes introduced by the UK government. Changes made in the previous November budget have led to a substantial rise in gaming duties. By April, the tax on remote gaming and online casino operations increased from 21 to 40 per cent, while online sports betting taxes rose from 15 to 25 per cent, excluding horseracing.

These tax adjustments are projected to cost Evoke between £125 million and £135 million annually. As part of its strategy to mitigate losses, the bookmaker announced it would close 200 William Hill shops, with an estimated 240 of its 1,200 locations earmarked for closure.

Bally’s, which recently acquired another former FTSE 250 firm, Gamesys, for £2 billion, has a history of strategic acquisitions aimed at expanding its portfolio. Founded in 2004, the company has undergone significant transformations, including a name change and a private takeover in 2024.