Evoke Post Q3 Revenue Decline of 7%
William Hill and 888 owner Evoke has reported a 7% year-on-year fall in third-quarter revenue, citing the closure of approximately 270 betting shops and customer-friendly sporting results, and has urged the UK government not to impose further gambling tax increases in the forthcoming Budget.
Revenue Under Pressure from Closures and Sporting Results
In its trading update for the three months ended 30 September 2026, the group reported revenue of £406m. The decline was driven primarily by the loss of retail earnings following the closure of around 270 William Hill shops, alongside a less favourable sporting calendar than the prior year. On an underlying basis, excluding the impact of the closures, the fall in revenue was materially more moderate.
The shop closures form part of a cost-mitigation programme announced following the UK Budget of November 2025, in which the government substantially increased gambling duties. The measures include a rise in remote gaming duty to 40% from 21% and the introduction of a 25% duty on remote sports betting. Evoke has previously estimated that the changes will add between £125m and £135m in annualised costs from 2027, with approximately £80m of impact expected in 2026.
Financial Impact and Leadership Response
The consequences of the tax changes are already visible in the group’s accounts. Full-year 2025 results, published in April, showed after-tax losses widening to £549.1m, up from £220.9m the previous year, largely reflecting a £440.3m impairment charge linked to the duty increases. Despite the loss, the group reported underlying progress, with adjusted EBITDA rising 43% to £301.3m and full-year revenue increasing 2% to £1.78bn, supported by a 9% improvement in its International division.
Chief Executive Per Widerström has argued that the shop closures demonstrate the practical consequences of the fiscal measures, stating that the action “shows the real impact on jobs and livelihoods from higher industry taxation”. In the Q3 update, Evoke called on the government to “carefully consider” any further tax increases ahead of the Budget, warning that additional measures would compound pressure on a sector already absorbing significant cost rises.
Evoke is not alone in responding to the tax environment. Rival operator Betfred has announced plans to close 132 shops and cut more than 600 jobs from September, also citing higher taxes and economic uncertainty. Industry representatives have repeatedly warned that duty rises risk accelerating the migration of customers to unlicensed operators, with Evoke among those flagging the growth of the black market as a material concern.
The company has also been reported to be exploring strategic options, including a potential sale, following the Budget announcement. It has withdrawn its medium-term financial targets and withheld forward guidance, citing the uncertainty created by the fiscal changes.
