Evoke, a UK-based gaming company facing financial difficulties, is open to acquisition, with reports suggesting that Bally’s, based in Rhode Island, has the inside track on the purchase.
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Looking for a Lifeline
The company, formerly known as 888 Holdings, Evoke, purchased the UK and international (non-U.S.) assets of William Hill from Caesars in July 2022 for over $2.6 billion. That acquisition has contributed to the financial morass currently enveloping the company, while its market capitalization is only $216.4 million.
In December, Evoke hired investment banks Morgan Stanley and Rothschild to explore its options, only a month after the United Kingdom’s Financial Minister Rachel Reeves announced taxes on online casino table games and slots would nearly double to 40% in April 2026, while the tax rate on sports betting would increase from 15% to 25%, effective April 2027.
Evoke’s level of debt, coupled with the looming tax burden, has caused panic in the company’s C-suite, and Bally’s may be the ideal white knight. Bally’s has experience working with the UK’s regulatory framework, and Evoke is particularly attractive for the American gaming company because of its existing iGaming footprint and its ownership of respected and established brands like William Hill.
But Bally’s has substantial debt of its own, and despite trimming some of it recently through the sale of Gamesys to Greek gaming company Intralot, the company still has approximately $5 billion in debt. Therefore, the interest rates on new loans to finance the purchase of Evoke would be steep.
S&P Global, an American financial data and intelligence firm, noted the possible acquisition and released the following: “We expect Bally’s leverage will remain elevated over the next several years due to ongoing development spending. We believe Bally’s Chicago will likely be completed by early 2027. In addition, to the extent its future Bally’s Bronx and Bally’s Las Vegas projects are debt-financed, we will assess the terms of the financing as more information becomes available.”
Bally’s wants Quid Pro Quo
Rhode Island’s indoor smoking ban takes effect in January 2027, and Bally’s is fearful its two state-sponsored Rhode Island casinos in Lincoln and Tiverton will be adversely impacted. Studies have shown that many older gamblers enjoy smoking inside casinos while they gamble and would seek alternative casinos that allow smoking if a ban went into effect.
However, a compromise was reached, and both casinos are allowed to have smoking lounges, but smoking will no longer be allowed on the casino floor.
To compensate Bally’s for what they believe will be substantial reductions to their bottom lines, Bally’s wants millions more in state money for advertising to replenish the customers they anticipate losing due to the smoking ban. House Bill H 8150 was introduced to the House Committee on Finance on behalf of Bally’s to procure the advertising money.
Speaking for Bally’s, company VP Elizabeth Suever told legislators that the bill is a “critical piece of legislation that modernizes outdated models and will allow Bally’s to remain strong against increased competition in New England and during times of broader economic uncertainty or downturns.”
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