Is 888 Holdings’ 2026 UK recovery plan working amid regulatory pressure

Financial shifts at Evoke plc

Evoke plc, the entity formerly known as 888 Holdings, reported revenue of £1.78 billion in 2025. This revenue follows a 2% increase compared to the previous year. Adjusted EBITDA for the same period rose by 14% to reach £356.2 million. However, the company booked a statutory loss of £549.1 million because of £440.3 million in non-cash impairments. These impairments stem from higher UK gambling duties and weak high street conditions. The company follows a Value Creation Plan to achieve annual cost savings of £30 million. Per Widerstrom, the CEO, this plan aims for sustainable profitable growth of 5% to 9% annually. You already know that the UK and Ireland markets serve as the primary revenue drivers for the group. In 2023, revenue from the UK and Ireland reached £658.5 million, which was a significant increase from £455.5 million in 2022. The adjusted EBITDA for the UK and Ireland segment also rose from £61.6 million in 2022 to £152.3 million in 2023.

The group also targets a reduction in leverage to below 3.5x by the end of 2026. This requires the company to reduce debt by £650 million. The company’s strategy involves targeting recreational customers in the UK to improve long-term sustainability. This shift led to a change in the revenue mix, where the company targets lower staking and higher margin customers. In 2023, stakes fell by 11.3%, but this fell against an increase in the betting net win margin from 10.8% to 12.1%. Marketing costs for 2023 were £237.6 million, a decrease of nearly £20 million from the £257.8 million spent in 2022. While the group plans to grow, it also writes off assets to manage its US presence, including a £28.1 million write-off for a new US platform.

Compliance failures and regulatory fines

The Gambling Commission fined 888 UK Limited £9.4 million in March 2022. This penalty followed failures in anti-money laundering and social responsibility practices. The regulator found that the company failed to identify players at risk of harm. One instance involved a customer who lost £37,000 over six weeks during the pandemic. In that case, the company did not carry out the required customer interaction. The company also gave a monthly deposit cap of £1,300 to an NHS worker who earned only £1,400 per month. The regulator found that the company failed to implement its own policies, which required customers to present Source of Funds documentation within 10 days before the system automatically restricted their specific accounts. This lack of oversight meant one customer spent £65,835 in five months without any Source of Funds checks. The company’s failure to properly identify players at risk through sufficient financial checks remains a central failure of its operations.

The company’s regulatory history includes a £7.8 million fine in 2017 for failing to protect vulnerable customers. When the company identified a customer with Source of Funds concerns, it restricted one of his 11 accounts but allowed him to open three more accounts to continue gambling. Most social responsibility interactions conducted by the company consisted of a single email describing responsible gambling tools without requiring a customer response. The regulator also noted that the company did not proactively place restrictions on accounts where social responsibility concerns were raised. The Chief Executive of the Gambling Commission stated that if the company repeats these failures, the regulator will consider the suitability of the operator to hold a licence.

The changing UK and Gibraltar regulatory landscape

The UK Financial Conduct Authority (FCA) issued £176 million in fines to 27 firms in 2024. This total exceeds the £53 million collected in 2023. Redress payments to consumers totaled £514,223,750 in 2024, with four firms responsible for these payouts. The FCA focuses on financial crime and the mistreatment of vulnerable customers. For example, Starling Bank and CB Payments faced fines for failing to implement voluntary requirements that restrict high-risk customers. The regulator also monitors transaction reporting, market abuse, and consumer credit conduct issues.

The government of Gibraltar prepares to update the Gambling Act 2005 through a new Parliamentary Draft. Minister for Digital and Financial Services Albert Isola stated that the new regulations will be modern and suitable for the industry. The gaming sector accounts for 25% of the economy in Gibraltar. The new regime will redefine activities that require a license and reinforce the importance of companies having a solid foundation in the territory. This update follows a period of suspension caused by Brexit and the COVID-19 health crisis. The Gibraltar Betting and Gaming Association has also challenged UK remote gambling licensing in the High Court. A judge dismissed a challenge in October, finding the new regime was not disproportionate or irrational.

Compliance metrics and market constraints

The company continues to navigate a complex environment of tax changes and regulatory scrutiny. The group aims to mitigate the impact of UK duty hikes through cost discipline and operational changes. The current market environment involves high levels of competition and varying levels of oversight across different jurisdictions.

The company faces a target to maintain an adjusted EBITDA margin expansion of approximately 100 basis points per year. It also aims to reach a leverage level below 3.5x by the end of 2026. Will the proposed UK duty hikes finally force the industry to abandon high-frequency betting models? The company continues to work with the Gambling Commission to address the findings of previous audits.