Bally's Intralot has agreed to acquire gambling group Evoke as part of an expansion strategy following a steep increase in British online gaming taxes.
The transaction will bring major betting brands including William Hill, 888, and Mr Green under the same corporate umbrella, creating a combined entity with pro forma annual revenues of approximately 3.2 billion euros.
The acquisition comes as gambling companies adjust to the higher Remote Gaming Duty in the United Kingdom, which rose from 21 percent to 40 percent on April 1. The tax change nearly doubled the duty rate on online operators overnight.
Bally's International Interactive, the interactive division of Bally's Intralot, faced a negative quarterly impact of 34 million euros during the second quarter as a result of the tax increase.
Under chief executive Robeson Reeves, management recovered roughly 21.4 million euros of that sum within the same three-month period, offsetting about 65 percent of the tax shock. The recovery included 10.1 million euros from revenue growth alongside 11.3 million euros generated through operational adjustments and cost savings.
Group adjusted earnings before interest, taxes, depreciation, and amortisation, known as AEBITDA, fell from 100.2 million euros in the first quarter to 84.6 million euros in the second quarter. The drop of 15.6 million euros was smaller than the total tax hit due to the management measures.
Tax impact and interactive division growth
Commercial activity at Bally's International Interactive remained resilient despite the tax burden. Second quarter online revenue in the United Kingdom grew by 5.3 percent compared with the first quarter and 11.6 percent year-on-year at constant exchange rates, reaching a record high.
The interactive division also recorded a 9.7 percent quarterly revenue increase in Spain. Prior to the second quarter, the group held approximately 14 percent of the British iGaming market, having expanded its net gaming revenue in the UK to 659 million euros from 639 million euros in 2024 and 574 million euros in 2023.
The division's UK revenue growth of 11.6 percent surpassed the overall British online market growth rate of 7 percent reported in the latest available official industry figures.
For the first half of the year, Bally's Intralot reported group revenues of 544.2 million euros and AEBITDA of 184.8 million euros, representing a margin of 34 percent. Bally's International Interactive contributed 377.6 million euros in revenue and 132.8 million euros in AEBITDA, achieving a 35.2 percent margin.
On a 12-month trailing pro forma basis prior to incorporating Evoke, Bally's Intralot generated 1.061 billion euros in revenue and 399.9 million euros in AEBITDA, yielding a margin of 37.7 percent.
Evoke financial performance and retail cuts
Target company Evoke entered the transaction following a period of internal restructuring. In 2025, Evoke raised its adjusted EBITDA by 14 percent to 356.2 million pounds, up from 312.5 million pounds in 2024, while expanding its margin by 220 basis points to 20 percent.
Evoke calculated that the higher British tax duties could add between 125 million pounds and 135 million pounds annually to its cost base once fully in effect, equivalent to about 36 percent of its 2025 EBITDA. Initial projections put the 2026 tax impact at around 80 million pounds prior to corrective measures.
During the first half of 2026, Evoke absorbed a 46 million pound increase in gaming duties while posting adjusted EBITDA of 150.2 million pounds. Company leadership aims to offset at least 50 percent of the total tax burden within the first full year of implementation.
To streamline operations, Evoke initiated significant reductions across the William Hill retail betting shop network. The company closed or scheduled the closure of approximately 270 shops, including 68 locations in the final quarter of 2025 and roughly 200 in the second quarter of 2026.
The store count fell from 1,302 shops in June 2025 to 1,024 shops in June 2026, marking a 21.4 percent reduction in one year. The store closure program is projected to add roughly 11 million pounds annually to adjusted EBITDA.
Despite fewer locations, UK retail revenue grew 3 percent on a like-for-like basis in the first quarter of 2026, with retail gaming revenues up 6 percent. The introduction of new gaming machines helped drive a 5 percent increase in retail gaming revenue in 2025 and yielded market share gains.
Total Evoke revenue held stable at 887.5 million pounds in the first half of 2026, compared with 887.8 million pounds in the same period of 2025. Core international markets grew 17 percent in 2025, setting revenue records in Italy and Denmark.
UK market consolidation and transaction terms
Market analyst firm S&P Global noted that the 40 percent duty rate accelerates consolidation across the sector. Higher tax obligations place heavier pressure on smaller, less efficient operators, whereas larger groups maintain the capacity to invest in technology and product development.
Upon completion of the transaction, Bally's Intralot will become the second largest operator in British iGaming and the fourth largest in British online sports betting based on gross gaming revenue.
The combined business will operate major brands including William Hill, 888, Mr Green, Jackpotjoy, and Virgin Games alongside Intralot's lottery and gaming technology assets.
The enlarged group is expected to generate pro forma revenues of approximately 3.2 billion euros and adjusted EBITDA of roughly 856 million euros, with a margin near 27 percent and cash conversion around 79 percent.
Bally's Intralot has identified 180 million pounds in pre-tax cost and capital expenditure savings to be achieved by the end of the second year after completion. The savings will target marketing, operating costs, and information technology systems, representing more than 50 percent of Evoke's total 2025 adjusted EBITDA.
The transaction reflects a sharp shift in valuation across the gambling sector. Evoke paid 2.2 billion pounds to acquire William Hill International in 2022. Four years later, Bally's Intralot agreed to acquire Evoke at an equity value of approximately 243 million pounds while assuming its debt.
Stock performance and market valuation
Shares in Bally's Intralot currently trade at 1.129 euros, giving the company a market capitalisation of 2.1 billion euros relative to pro forma revenue of 3.2 billion euros and projected combined EBITDA of 856 million euros, which management aims to expand to 1 billion euros with synergies.
Technical stock analysis indicates that the shares must break above a short-term resistance line at 1.174 euros to build upward momentum toward a target range of 1.22 euros to 1.24 euros.
