Evoke, the owner of William Hill and 888, has reported a £46 million earnings hit from higher gambling taxes as it prepares for a £243 million takeover by Greek gambling firm Bally's Intralot.
The London-listed company said underlying earnings fell 10% to £150.2 million in the six months to June 30 after the gaming duty impact, largely due to the UK Government's decision to raise remote gaming duty from 21% to 40% from April.
Former Chancellor Rachel Reeves also announced last year that a new online sports betting duty of 25% would apply from 2027, covering all sports except horse racing. Evoke has previously warned its duty costs will rise by up to £135 million a year from 2027 as a result of the combined changes.
On a bottom line basis, Evoke saw first half pre-tax losses widen to £80 million from £77.7 million a year earlier.
The figures come two months after Evoke agreed a £243.1 million takeover by Bally's Intralot, worth 52p per share.
The companies said when the deal was announced that recent increases in gambling taxes in the UK and heightened competition have resulted in an "opportunity for consolidation".
Evoke closed around 200 betting shops in May as it looks to cut costs and offset the impact of the tax blow.
It said it had been able to offset over half of the gaming duty hike so far through "lower but more effective marketing investment, improved promotional efficiency and operational cost savings".
