The parent company of the renowned William Hill betting brand is preparing contingency plans to sell its highly profitable Italian operation. This strategic move is a direct response to fears of a severe tax increase on the gambling industry, anticipated in the upcoming UK budget.
Bankers Appointed for Potential Italian Business Sale
Sky News has learned that Evoke, the London-listed gambling group, has formally enlisted bankers from Morgan Stanley to evaluate a potential sale of its market-leading online business in Italy. This assessment, conducted on the eve of Chancellor Rachel Reeves's budget announcement, is a protective measure to strengthen the company's financial position.
Industry sources confirmed that the sale would only proceed if the budget delivers a punitive tax raid on the gaming sector. An auction for the Italian arm is expected to attract significant interest from other major players across Europe and could raise hundreds of millions of pounds for Evoke.
Wider Industry Impact and UK Retail Closures
The entire UK gambling sector is on high alert. Recent reports have speculated that the government is considering tax hikes large enough to generate an additional £1 billion to £3 billion for the Treasury. In preparation, Evoke and its rivals, including Betfred, Flutter Entertainment, and Entain, have already drafted plans to close a significant number of their UK betting shops.
Evoke has been public about the consequences, stating last month that "any tax increases in the budget would inevitably result in UK retail shop closures." The company employs more than 7,600 people in the UK, with the vast majority, nearly 6,500, working in its retail operations. A further 800 are based at its main UK office in Leeds.
The Strategic Importance of the Italian Division
Evoke's Italian business is a cornerstone of its international division, which operates exclusively online. Alongside Spain, Denmark, and Romania, Italy is one of the company's four core international markets.
The unit's financial contribution is substantial. In its half-year results, Evoke reported that the international division accounted for just under a third of total revenue and approximately half of the group's EBITDA. The company has highlighted the strong performance of its 888casino brand in Italy, noting it continues to outperform competitors and gain market share.
Last year, Evoke paid close to £330 million in taxes, equating to over 60% of its UK profits. The company, along with the wider industry, warns that excessive tax increases could drive customers towards unregulated black markets, jeopardising thousands of jobs and ultimately raising less revenue than forecast. An Evoke spokesman declined to comment on the specific contingency plans for the Italian arm.
