Evoke Plc has announced plans to permanently shut down around 200 of its retail outlets across the United Kingdom, following the government’s recent tax increases on gambling. This decision, disclosed to employees on Tuesday, impacts approximately 15% of the company’s retail footprint and is part of a broader strategic review that may lead to asset sales. The closures come in the wake of the UK government’s decision to increase the Remote Gaming Duty and Remote Betting Duty, initially revealed in the autumn budget by Chancellor Rachel Reeves. While the Remote Gaming Duty becomes effective today, the Remote Betting Duty is set to be enacted in April 2027.
Evoke operates about 1,300 betting shops across the UK and has been conducting a strategic review of its operations since December. This comprehensive review includes evaluating the possibility of either a complete or partial sale, along with other strategic alternatives. The company has cited significant increases in operational costs, including those stemming from tax hikes, as a primary reason for the upcoming closures.
In a statement provided to iGB, an Evoke spokesperson detailed the rationale behind the closures, highlighting the unsustainable nature of some retail locations due to escalating cost pressures. The company emphasized its commitment to supporting affected employees and reiterated that such decisions are taken after careful consideration. “In the face of rising cost pressures, we must take action to ensure we can invest in our core retail estate, with the right shops, in the right locations,” the spokesperson added.
The recent tax hikes have been a concern for the gambling industry, with several operators, including Betfred and Entain, forecasting potential downsizing of their retail operations. In 2025, Flutter Entertainment closed 57 outlets in response to the ongoing decline in retail betting. The shifting regulatory landscape poses challenges for operators as they strive to balance costs with sustainable business operations.
Deutsche Bank has responded to these developments by lowering its earnings forecasts for Evoke for the fiscal years 2026 and 2027, projecting a 12% and 18% reduction, respectively. Given Evoke’s high financial leverage, the bank predicts a corresponding decrease in earnings per share by 40% and 52% over the same period. Furthermore, the bank anticipates modest growth of just 2.5% in the UK online sector for the next two fiscal years, with profit margins expected to shrink from 23% in 2026 to 13% in 2027.
Amid these financial pressures, there is ongoing speculation about potential buyers for Evoke or its assets. Ben Robinson, managing partner at Corfai, suggests that private equity firms are the most viable candidates for acquiring the entire group. In contrast, Robin Chhabra, CEO and president of Tekkorp Capital, argues that divesting Evoke’s international segment would be a strategic move. According to Chhabra, markets such as Italy, Spain, Romania, and Denmark offer significant growth potential and remain unaffected by the UK’s new tax duties. Selling these international operations could provide a rapid means for Evoke to reduce its debt burden.
As Evoke navigates these challenges, the company will need to finalize its strategic decisions and implement them in the coming months. The forthcoming closures are slated to begin in May, and the market will be closely watching Evoke’s next steps, including any potential sales or restructuring that could reshape its business model. The industry will also be observing how the broader market responds to the increased regulatory and financial pressures, particularly as the new tax obligations take full effect.
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