PROVIDENCE, R.I. – Bally’s Corp. confirmed it is in talks to acquire Evoke, the parent company of William Hill and 888, but an early assessment from Wall Street suggests the deal may carry more downside than upside.
In a note to clients dated April 20, Stifel analyst Jeffrey Stantial said folding Evoke into Bally’s expanding international portfolio could become “an operating distraction” at a time when the company is already adjusting to the United Kingdom’s new gambling regulations and higher tax burdens.
“While enhanced scale should help with mitigation efforts, we see risk the industry as a whole is underestimating potential share loss to the unregulated market as onshore operators pull back on marketing and promos,” Stantial wrote.
He added that Evoke’s flagship brands — including 888 and William Hill — have been losing consumer awareness and loyalty in the UK for several years, complicating any turnaround effort Bally’s might attempt.
Leverage Concerns Loom Over All‑Stock Bid
Bally’s all‑stock proposal values Evoke at roughly 67.5 cents per share. While the headline price is modest, Evoke’s heavy debt load would push Bally’s leverage higher if a deal is completed. Stantial estimates Bally’s Intralot leverage could rise to 4.3x from 3.5x.
Evoke carries about $2.4 billion in liabilities, much of it tied to its 2022 purchase of William Hill’s international operations from Caesars Entertainment.
The analyst said the acquisition could still be cash‑flow accretive, but the combined company would be juggling Evoke’s debt while also navigating the UK’s tax changes — a combination he described as challenging.
Bally’s has experience with distressed assets and is familiar with the UK regulatory environment, but its regional casino division is also working through its own leverage issues.
Analyst: Evoke May Not Be Worth the Trouble
Stantial cautioned that Bally’s should tread carefully, noting that Evoke has attracted limited interest since announcing a strategic review in December.
“We believe risk‑reward around a potential Evoke acquisition is wide and skewed slightly negative given uncertainty around the U.K. tax hike impact and feasibility of ambitious mitigation targets,” he wrote.
Given Evoke’s financial strain, the difficult UK operating climate, and a lack of competing bidders, Stantial said the company is likely to continue losing market share — and that Bally’s may be better off competing organically rather than buying its way in.
