Evoke considers group break-up, sales, as it expects a hit from the UK tax increase

• Evoke is among the companies to be worst impacted by the increase of online gaming duty to 40% in the UK
• The company is already considering business restructuring and sales of core assets amid what onlookers say could be tepid interest
• Evoke was already reported to be looking into the potential sale of its Italian division as it faces £135m in tax a year

Evoke, one of the UK’s major gambling companies, is debating whether to break up or sell individual assets of its business as it assesses the impact of a new tax increase in the country, which has raised the levy to 40%.

Evoke mulls restructuring options with the help of key bankers

The company was among the British gambling majors to caution that a tax increase would make the regulated market less competitive against black-market operations, forcing physical locations to shut down.

Now, the company has confirmed that it has hired Morgan Stanley and Rothschild to explore potential sale options and business restructuring.

The new tax regime in the United Kingdom would most heavily impact Evoke’s William Hill network of1,400 physical betting shops, which the company bought for£2.2bnseveral years ago.

Rumors are swirling that Evoke’s assets are now at a record low investor interest, which could mean that no buyer emerges any time soon, with bondholders taking over the company instead and divvying up its assets.

Evoke is predicting that it would have to pay an extra £135m in tax a year, citing the recently increased online gambling duty, which went from 21% to 40% presently.

The company was previously reported to be considering the sale of its Italian business, which could fetch it as much as £350m and £450m.

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