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    Regulation

    Evoke Plans to Shut Down 200 William Hill Shops Amid Rising UK Tax Burden

    OliBy OliApril 2, 2026No Comments
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    Key Highlights

    • Approximately 200 William Hill retail locations face permanent closure beginning this May, representing roughly 15% of Evoke Plc’s physical footprint
    • UK government’s Remote Gaming Duty hike from the autumn budget triggered the shutdown decision
    • Company exploring comprehensive strategic alternatives, potentially including partial or complete sale
    • Deutsche Bank significantly reduced earnings projections, forecasting EPS declines of 40% for FY26 and 52% for FY27
    • Analysts recommend divesting international operations as fastest path to debt reduction

    Evoke Plc, William Hill’s parent organization, informed employees this Tuesday of its intention to permanently shutter roughly 200 physical betting locations throughout the United Kingdom.

    The shutdown initiative launches in May, affecting approximately 15% of the company’s retail portfolio. Evoke presently maintains operations across roughly 1,300 betting establishments nationwide.

    According to company officials, these shop closures form part of an extensive strategic evaluation initiated last December. This comprehensive review encompasses potential asset sales, which could involve disposing of business segments or the entire operation.

    The move follows Chancellor Rachel Reeves’ announcement regarding increases to both Remote Gaming Duty and Remote Betting Duty in the previous autumn budget. The Remote Gaming Duty adjustment became effective April 1, 2026, with the Remote Betting Duty modification scheduled for April 2027 implementation.

    CEO Per Widerström of Evoke initially disclosed the closure plans this past January during a company performance briefing. Warnings about potential shutdowns had surfaced even prior to the budget announcement.

    Mounting Financial Pressure Drives Closure Decision

    A company representative explained that Evoke conducted an exhaustive operational assessment. The spokesperson highlighted escalating financial obligations facing the regulated gaming industry, particularly citing the autumn budget tax adjustments.

    “Beginning in May, we’re shuttering locations that have become economically unviable,” the representative stated.

    Evoke pledged comprehensive assistance for retail employees impacted by the closures.

    “Such determinations are always made with careful consideration, but given escalating operational expenses, we must act decisively to preserve our ability to invest in our primary retail network, maintaining optimal locations in strategic markets,” the statement elaborated.

    Evoke isn’t alone in confronting these challenges. Additional retail gaming operators, such as Betfred and Entain, cautioned that the tax increase might trigger closures throughout their property portfolios.

    Flutter shuttered 57 locations during 2025 amid persistent retail sector deterioration.

    Financial Projections Slashed as Company Explores Strategic Alternatives

    Deutsche Bank revised its Evoke forecasts downward in an analyst report released in January. The financial institution lowered EBITDA projections for FY26 and FY27 by 12% and 18% respectively.

    Given substantial financial leverage, the bank anticipates earnings per share will decline 40% in FY26 and 52% in FY27. Deutsche Bank projects UK online expansion at merely 2.5% for both fiscal years, with profit margins contracting from 23% in FY26 to 13% by FY27.

    These dramatic forecast reductions have intensified speculation regarding potential acquirers for Evoke or its business divisions. Ben Robinson, managing partner at Corfai, recently indicated that private equity represents the most plausible purchaser for the consolidated enterprise.

    Nevertheless, Robin Chhabra, CEO and president of Tekkorp Capital, advocates for Evoke to consider separating its international operations instead.

    “The crown jewel remains the International division; territories including Italy, Spain, Romania and Denmark present double-digit expansion opportunities,” Chhabra explained. “These markets remain unaffected by the chancellor’s new tax obligations.”

    Chhabra emphasized that divesting these international holdings represents “the sole rapid pathway to reduce leverage” for the organization.

    The Remote Gaming Duty increase formally commenced on April 1, 2026.

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