William Hill Owner Faces Breakup as Budget Tax Shock Hits Gambling Sector

The owner of William Hill, one of Britain’s oldest bookmakers, is considering a significant shake-up after recent tax hikes from the Budget dealt a major blow to the gambling industry. Evoke, which operates well-known brands including William Hill, 888, and Mr Green, has announced a strategic review that could see the group broken up or even fully sold, as it responds to mounting financial pressures.

The move follows Chancellor Rachel Reeves’ announcement of increased gambling duties. In her recent Budget, she raised remote gaming duty from 21 percent to 40 percent next year and set out plans for online betting duty to rise from 15 percent to 25 percent the following year. The changes have left the sector unsettled, threatening investment and jobs across the UK.

Evoke has warned that the jump in gambling taxes could increase its annual duty costs by up to £135 million from 2027. It anticipates a substantial reduction in investment within Britain and expects thousands of job losses throughout the country. The company has already made £25 million in cuts this year to offset rising National Insurance costs resulting from Ms Reeves’ earlier Budget measures.

The broader sector is reeling from the impact of these reforms. Major rivals have already announced shop closures or have warned that further tax increases may force their hand. Paddy Power revealed in October it would close 57 of its shops in the UK and Republic of Ireland, while Betfred said before the Budget that it may shutter all 1,287 of its outlets if tax rises proceeded as feared. The Budget’s passage has intensified concerns about long-term viability in the industry.

Ms Reeves defended the changes, stating that her approach to taxing different types of betting was driven by their social impact. She told Parliament that bingo taxes were removed due to perceived social benefits, whereas machine gambling was untouched to protect seaside towns and pub incomes. She highlighted that available evidence suggests that online gaming and betting result in more severe harms than in-person gambling.

The tough environment has taken a toll on Evoke, listed on the London Stock Exchange. The company, formerly 888 Holdings, acquired William Hill in 2021 for £2.2 billion. Although revenues recently ticked up to £1.8 billion, Evoke reported a pre-tax loss of £191 million last year, and growth this year remains below expectations. The announcement of a strategic review led to a brief rally in its share price, which had previously dropped over 36 percent following the Budget. Reports suggest the company may sell its Italian betting business to strengthen its finances, with bankers from Morgan Stanley and Rothschild overseeing the process.

The Treasury did not issue a comment on the development. The outlook for the British gambling sector remains uncertain, as operators weigh their options under a stricter tax regime and evolving regulatory landscape.