Evoke Plc, the London-listed operator behind William Hill, 888 and Mr Green, has delivered a critical response to the UK Budget, warning that dramatic tax increases will trigger mass job losses and accelerate black market growth while paradoxically reducing total government tax revenue from the gambling sector.
Chancellor Rachel Reeves confirmed that Remote Gaming Duty (RGD) will nearly double from 21% to 40% starting April 2026, while a new 25% online sports betting duty will replace the current 15% General Betting Duty from April 2027, covering all sports except horse racing.
£329 Million Tax Contribution Under Threat
Evoke paid £329 million in taxes and duties to the UK Exchequer in 2024, representing more than 60% of its UK profits. The company’s Board has assessed that the RGD increase to 40% will fundamentally reshape the UK operating environment for betting and gaming, including accelerating growth in the unregulated and untaxed black market.
The operator believes the tax increases will eliminate the commercial rationale for licensed operators to invest in the UK market. Several thousand UK jobs across the betting and gaming industry are expected to be lost as a direct result, with substantially reduced investment flowing into UK sports, particularly horse racing. The broader betting and gaming supply chain faces severe risk.
Evoke also warned that the duty increases will undermine progress made by licensed UK operators on safer gambling initiatives in recent years. The company expects regulated betting and gaming products will become more expensive for consumers, driving increased player migration to black market operators where customer protection, operator accountability, and tax generation are non-existent.
Financial Impact: £125-135 Million Annual Increase
Prior to mitigation measures, the tax rate changes will increase Evoke’s duty costs by approximately £125-135 million annually once fully implemented from April 2027. The pre-mitigation impact in FY26 is expected to reach approximately £80 million.
Evoke expects to mitigate approximately 50% of the impact over the medium term through supplier savings, reduced marketing expenditure, retail store closures, operating cost reductions, and potential customer proposition adjustments. As one of the UK market’s largest operators, the company is better positioned than smaller competitors to navigate the increase and may benefit from market share consolidation as smaller operators exit due to unsustainable costs.
The Group has withdrawn its medium-term financial targets while evaluating future investment plans in light of the significant duty changes. A further update will be provided when appropriate.
Widerström: “Ill-Thought-Through and Highly Damaging”
Per Widerström, CEO of Evoke, delivered a scathing assessment of the Budget measures:
“Today the Chancellor Rachel Reeves delivered the UK Budget, outlining a series of measures that will shape the country’s economic direction for the year ahead. For our industry a series of major tax changes were announced that will significantly reshape the environment for all licensed betting and gaming operators in the UK.
The decision by the Government to substantially raise taxes is highly damaging for the economy and consumers. As an industry, we have consistently warned of the significant impact on jobs, investment in the UK, and player protection that these changes would have, yet sadly the Government has chosen not to listen. These proposals are ill-thought-through, counterproductive, and highly damaging. It is clear these changes will significantly harm businesses, employees, and customers.
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 jobs to be cut up and down the country.
As a result of the actions now required, these tax changes will reduce the overall level of tax the regulated industry pays in the UK, and more importantly it will have a significant negative impact on player protection as these changes will incentivise activity moving to the illegal and dangerous black-market.”
Industry-Wide Implications
The Budget announcement represents one of the most significant regulatory shifts for the UK gambling industry in recent years. The duty increases come at a time when operators are already navigating heightened regulatory scrutiny, enhanced safer gambling requirements, and evolving consumer protection standards.
Evoke’s response signals broader industry concerns about the unintended consequences of the tax policy, particularly the risk of regulated operators becoming uncompetitive against unlicensed alternatives that operate without taxation, compliance costs, or player protection obligations.
Source: Evoke Plc
