What is it with gaming and M&A activity these past two weeks? Whatever it is, it’s far from boring!
Bally’s Intralot announced today that it has struck an agreement to acquire Evoke for approximately £243.1m ($326m), completing a hat-trick of notable M&A news following Caesars last week and MGM Resorts earlier this week.
Despite being financially dwarfed by the historic $17.6bn agreement brokered by Caesars in the US, this latest merger comes at a crucial juncture for the UK market following significant tax rises which have bred uncertainty from every sinew of the nation’s industry.
UK: Consolidate or get left behind
Indeed, as outlined by Bally’s Intralot CEO Robeson Reeves in the operator’s formal press call this morning, it is the shifting tide of tax in the UK that allowed for this merger initially: “This tax change brought about this opportunity. Any large operators are growing because the long tail gets the squeeze. The regulations and tax rates mean less players in the market. I think this is a great way to gain another £2bn of revenue and some great sport expertise.”
“When the tax announcements came, we saw new customers coming in despite the same marketing spend which is a key indicator of lower competition. I think bigger fish will succeed and the long tail will struggle which is a shame because I am a fan of competition. As soon as the tax announcements came, we saw new customers coming in despite the same marketing spend which is a key indicator of lower competition.”
We have no immediate plans to close any retail stores
Fascinatingly – although perhaps unsurprisingly – this sentiment echoes that of Bally’s Chairman Soo Kim who sat down with Global Gaming Insider earlier this year to explore the UK market. Kim outlined his expectation that larger operators within the UK landscape would consolidate through M&A activity with smaller entities in the market that may struggle to weather the financial storm that that inevitably follows such a significant tax hike.
Contextually, as part of this latest development, it has been revealed that Evoke estimated the changes to the UK tax structure would add £125m - £135m to annual duty costs before mitigation once fully implemented.
‘No plans’ to begin bailing the boat
One of the first questions that follows a major merger usually centres around asset delegation. Of course, within the context of UK market that has suddenly become – for lack of a better phrase – very expensive, this question becomes all the more relevant.
Nevertheless, Reeves remains insistent that, while the operator is always open to offers, no asset sales are in the immediate pipeline. Further, he also outlined that there are no plans to close retail stores, news which will come as a relief to thousands of William Hill employees across the UK: “We have no immediate plans to close any retail stores, Evoke have announced some closures themselves, but while taxes may have increased on iGaming, we are still one company – and you have to find the money from somewhere. Horseracing, for example, is still exposed if retail footprints are still reduced.”
“There is also no intention to dispose of assets, but if an amazing offer comes along, then we will consider it if it feels right. But currently there are no immediate plans to do so right now.”
The lay of the land: New opportunities on the horizon
"If and when we acquire Evoke, we will become one of the largest, most dominant and profitable gaming operators in Europe” stated Reeves: “I have spoken about expansion before, but I think the UK market is excellent for large operators. More broadly, Bally’s Intralot will inherit Evoke’s business from a selection of territories which we were not previously present in – which aligns with our strategy of global expansion.”
Evidently bullish about the potential of this newly brokered merger, Reeves continues by outlining that it will open the door to global expansion for Bally’s Intralot – a point which aligns closely with their previously underlined strategies, whilst further supporting the broader ethos of expansion undertaken by an increasingly proactive Bally’s group on a global scale.
I think this is a great way to gain another two billion in revenue and some great sport expertise
Reeves also highlighted more specifically the approach he expects on the technical side: “There will be some things that we use broadly such as our data platform – which can and will still be personalised. Generally, there will be a much higher focus on digital. We will be layering in our platform capabilities. We will operationally manage and manage carefully – but we will definitely be using our data platform because it's very good.”
Conclusively, on the topic of expansion, Evoke’s recently scaled back operations across Latin America and Africa comes to the fore, with Reeves further emphasising that activity in these areas – particularly Africa, where Evoke remains present – is not off the cards: “We want to have diversified income; we are definitely looking at this for giving us a pathway for expansion. Evoke is still in some African locations.
“Evoke is in many markets, the debt burden has been constructed in a way where our free cash flow generation will remain significant and Evoke will pay the interest, leaving Bally’s Intralot shareholders no downside risk if we fail and huge upside if we succeed, and I am confident that we will.”
Reeves took over the position of Bally’s Intralot CEO in November 2025, as was planned when Bally’s acquired Intralot in July of the same year
