Bally’s Intralot To Acquire Evoke

Bally’s Intralot has agreed to acquire Evoke, the struggling London-listed owner of the William Hill and 888 brands, in a recommended all-share deal with a capped cash alternative, the companies announced Friday. 

The transaction values Evoke’s equity at about £243 million, or roughly $326 million, and implies an enterprise value of about £2.2 billion, or roughly $3 billion, once debt is included.

Bally’s Intralot is offering roughly 70 cents per share. News of the agreement sent Evoke’s stock up as much as 14%. A cash alternative is capped at about $157 million.

The combined company would rank as the second-biggest player in UK online casino and No. 4 in UK online sports betting, pulling William Hill and 888 together with Jackpotjoy and Virgin Casino. Bally’s Intralot CEO Robeson Reeves said the deal saves the company seven years in building the global operator he’s after, according to iGaming Business.

Evoke has been in rough shape for years. It brought William Hill and 888 together in 2022, buying William Hill UK from Caesars, and has carried heavy debt ever since, closing last year with net debt of about $2.5 billion.

The UK’s gambling tax hike, which lifted the Remote Gambling Duty from 21% to 40% in April, was clearly a breaking point. Evoke launched a strategic review in December and earlier this year announced plans to close roughly 200 betting shops across the UK. To clear the deal, private lenders led by TPG Credit committed about $1.2 billion to refinance Evoke’s debt, Reuters reported.

Rhode Island-based Bally’s, which operates that state’s two casinos and its exclusive online casino platform, has spent the past year-plus in the news for its land-based projects. It’s building a $1.7 billion Chicago casino, plans to construct one on the Las Vegas Strip next to the planned A’s ballpark, and landed one of three downstate New York casino licenses.

Subject to approvals, the companies expect to close the deal in either the fourth quarter of 2026 or the first quarter of 2027.

M&A & M&A

Evoke is hardly the only casino brand changing hands right now. The deal lands in the middle of a remarkable run of consolidation. In late May, Caesars Entertainment agreed to be acquired by Tilman Fertitta’s Fertitta Entertainment in a transaction valued at about $17.6 billion, or roughly $5.7 billion in cash plus the assumption of Caesars’ debt. The Golden Nugget owner, who also owns the NBA’s Houston Rockets, had been chasing the deal since at least February and reportedly outbid Carl Icahn’s firm to land it.

Days after that announcement, The New York Times reported that Barry Diller’s People Inc. is preparing an $18 billion run at MGM Resorts. People Inc. already owns 26.1% of MGM and is proposing to buy the rest at $48.30 per share in cash. Diller, who built his stake during the pandemic, has been pursuing full ownership for months, suggesting the market undervalues MGM’s assets that include roughly 40% of the Las Vegas Strip.