William Hill and 888 owner Evoke has revealed a £46 million earnings hit from higher gambling taxes as it prepares for a £243 million takeover by Greek gambling firm Bally’s Intralot.
The London-listed firm said underlying earnings slumped 10% to £150.2 million in the six months to June 30 after the gaming duty impact, largely as a result of the UK Government’s move to hike remote gaming duty from 21% to 40% from April.
Former Chancellor Rachel Reeves also announced last year there would be a new online sports betting duty of 25%, which will cover all sports except horse racing, from 2027, with Evoke previously warning its duty costs will increase by up to £135 million a year from 2027 as a result of the combined changes.
On a bottom line basis, Evoke saw first half pre-tax losses widen to £80 million from £77.7 million a year earlier.
The figures come two months after Evoke agreed a £243.1 million takeover by Bally’s Intralot, worth 52p per share.
The companies said on unveiling the deal that recent increases in gambling taxes in the UK and heightened competition have resulted in an “opportunity for consolidation”.
Evoke shut around 200 betting shops in May as it looks to cut costs and help offset the impact of the tax blow.
It said it had been able to offset over half of the gaming duty hike so far through “lower but more effective marketing investment, improved promotional efficiency and operational cost savings”.