Is the UK a 'scary' place? What will happen for punters? The questions behind the Evoke takeover

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William Hill's owner Evoke has agreed to be taken over by Bally's Intralot in a deal worth £243 million. 

But plenty of questions remain after Friday's announcement, including what the deal might mean for the companies, punters, racing and the wider gambling industry in Britain and Ireland.

A scary marketplace?

During a press call on Friday, Bally’s Intralot chief executive Robeson Reeves outlined that the planned takeover was not merely a case of getting his hands on Evoke’s UK assets, most notably William Hill.

Evoke’s other brands – 888 and Mr Green – also provide greater reach across Europe for Bally’s Intralot, a company based in Greece and listed on the Athens stock exchange.

Indeed, Reeves mentioned that the UK gambling market had a perception that “scared” people due to the increases in betting taxes that came into force in April and increased regulation, such as planned affordability checks.

While acknowledging these factors, Reeves said he believed that is why it made sense to try to acquire Evoke, a large-scale established business, as the UK betting industry was likely to consolidate and shrink with smaller firms unable to meet the new reality as well as bigger ones.

Chancellor Rachel Reeves raised a number of betting taxes in last year's UK budgetCredit: Dan Kitwood

What is the future for betting shops?

While being spared from direct tax increases in last year’s UK budget, betting shops have been put up for closure by William Hill’s current owners with Reeves saying there was “no intention to re-review” the decisions that had already been made, or the place of shops within the group.

Around 200 William Hill betting shops are expected to be closed, a fact that Reeves said would have a knock-on effect to the income of British racing, which itself had been exempted from rises in taxes on bets on the sport last year.

“I know lots of people have talked about horseracing not being taxed, but it’s as exposed to what has happened if you think that the retail footprint is being reduced because of this,” Reeves said. “We are still one company and it might be the case that you reduce marketing spend in one area to help.”

Will any part of the new company be up for sale?

Reeves said there was “no intention” to break up the enlarged company if the deal went ahead as planned.

“We wanted the whole group,” Reeves said. “We have no intention to sell any assets, as I’ve said a few times.”

Despite that assurance, Reeves went on to say that every commodity had its price should a suitable offer be made, although it might be difficult to prise Evoke’s foothold in Italy away from the new owner.

“If someone offered me a billion for Denmark, I’d sell,” Reeves said. “Sometimes when you say ‘I won’t sell something’, and someone offers you a knockout price which is ridiculous, you take it anyway’.

“People will talk to me and say, ‘Why don’t you sell Italy?’ or something like that. Italy is one of the prized assets, probably one of the things I’d refuse to sell.”

Race sponsorships may be under threat as part of the takeover of EvokeCredit: John Grossick (racingpost.com/photos)

Will planned cost savings impact British racing?

As part of the deal, Bally’s Intralot would be seeking to make £180 million in savings through synergies by the end of the second year of the enlarged company.

Reeves was explicit in terms of where these savings would come from: reduced advertising and marketing spend, changes to management structures, and technology infrastructure alterations.

In securing William Hill in particular, Bally’s Intralot, which already owns Virgin Bet among other brands, gains greater exposure to sports betting but this will not necessarily translate into increased spending on sport, for example through concessions like best odds guaranteed, to acquire customers.

Sponsorship is likely to come under pressure too, with Reeves saying he planned for a “rationalisation” of marketing spend on above the fold advertising – the sort you see on television, print, or at racecourses – with a greater emphasis on more targeted digital advertising.

This approach also comes at a point when changes to gambling advertising in Ireland, which will restrict betting adverts on television, radio and on-demand, are due to come into force next year.

Will anything change for punters?

Reeves would not comment on the gambling experience being offered by Evoke’s brands currently, but said getting in step with the regulatory environment in the UK would be a key focus.

The number one priority would be ensuring that checks undertaken by bookmakers on punters would be truly frictionless as anything else acted as a burden to punters.

“When I look at regulation, especially in the UK, the biggest churn is regulatory barriers – asking for something like someone’s bank statements,” Reeves said. “All journeys that have customer information have got to be as frictionless as possible. 

“I believe many operators say, ‘I don’t like the look of this regulation’, and then bury their heads in the sand. Instead, you need to get onside with the spirit of this. People play forever if they can spend the right amount forever.”

Read more:

William Hill owner Evoke agrees to £243 million takeover by Bally's Intralot 

Racecourse Media Group defies challenges to deliver record £118.4 million to shareholder tracks 

New report reveals an untapped global audience of 200 million for racing 

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