Evoke Warns of Major Job Losses Following Sharp UK Tax Hikes on Online Gambling

Shares in Evoke, the UK-based operator behind William Hill and 888, plunged today after the company cautioned that rising taxes on online gambling will sharply reduce profits and force a sweeping restructuring that could include thousands of job cuts.

The announcement comes on the heels of new tax measures unveiled by UK Finance Minister Rachel Reeves in yesterday’s budget.

Under the government’s plan, taxes on online slots and games will jump from 21% to 40% starting April 2026, while the tax on sports betting will rise from 15% to 25% in April 2027. “I will reform gambling taxes in response to the rise in online gambling. Remote gaming is associated with the highest levels of harm,” Reeves stated during the budget presentation.

Evoke, which operates across sports betting, online casino, poker and a large UK retail betting division, trades on the London Stock Exchange and counts the UK, Spain, Italy, Romania and Denmark as its key markets. Due to its heavy reliance on the UK, the company anticipates that the adjustments will increase annual duty costs by £125–£135 million.

CEO Per Widerström signalled today that the company would be forced to rethink its strategy in light of the new tax landscape. “We will begin immediately on executing our mitigation plans, which involve a significant reduction in investment into the UK. And, very regrettably, the likely need for thousands of jobs to be cut up and down the country,” he said.

Alongside the warning, Evoke withdrew its medium-term financial targets as it reevaluates future investment. By 4:35 p.m. UTC, Evoke’s share price had fallen 4.09% to 29.30 pence.

Flutter Entertainment plc also issued a response, asserting that it is better positioned to weather the tax increases. The company projected that the changes would impact adjusted EBITDA by roughly $320 million in fiscal year 2026 and $540 million in 2027 before any mitigation measures. Kevin Harrington, Flutter’s UKI CEO, criticised the policy shift: “Today’s tax increases are a very disappointing outcome and will have a significant adverse impact on our industry. The Chancellor rightly wants to address harm, but these changes will hand a big win to illegal, unlicensed gambling operators who will become more competitive overnight.

These black market operators don’t pay tax and don’t invest in safer gambling. At 40 percent, the UK’s remote gaming duty is now above countries such as the Netherlands, where a recent tax increase saw a rise in illegal gambling and a fall in Government receipts.”

Harrington added, “Despite this impact, I am confident that through both our scale and leading position in the UK, as well as the proactive cost initiatives that we are taking, we are well placed to navigate through today’s changes.”

Stella David, CEO of Entain, also voiced strong opposition. “We are deeply disappointed by today’s decision to punitively increase UK gambling taxes, putting at risk an industry which already contributes £7 billion annually to the UK economy and supports over 100,000 jobs across the country. Disproportionately increasing gambling taxes will not only have a detrimental impact on our industry but also heightens the risk for customers. As seen in other countries, punitive tax increases often lead to lower tax revenues overall, whilst also driving players to illegal, unregulated operators with no player protections.” She added that “The Government must now urgently tackle the black market and the consequences of today’s decision. Entain remains well positioned to deliver sustainable growth, underpinned by the Group’s diverse geographic footprint and strong portfolio of leading positions in attractive markets.”

Super Group, parent company of Betway, signalled that it has countermeasures in place to ease the financial impact. “Super Group supports the reasonable taxation of online gaming in the UK,” said CEO Neal Menashe. “We rely on the government to ensure that today’s very substantial increase should be paired with robust and strict enforcement against non-paying offshore operators. This is essential to protect the regulated sector’s investment in jobs, technology, and responsible gaming in the UK.”

Evoke now faces a critical turning point as it reassesses its UK commitments in the wake of the most aggressive tax increases the sector has seen in decades.

By fLEXI tEAM