Bally's Intralot CEO Robeson Reeves Talks Evoke Takeover

Summary

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Episode Overview

Podcast: Bloomberg Talks
Episode: Bally's Intralot CEO Robeson Reeves Talks Evoke Takeover
Air Date: June 5, 2026
Guest: Robeson Reeves (CEO, Bally's Intralot)
Theme: The episode centers on Bally's Intralot's acquisition of Evoke, parent company to brands like William Hill and 888 Casino. Reeves discusses the strategic motivations behind the purchase, its financial context, challenges in the UK gambling market, the role of high street shops, and the political climate surrounding gambling operations.

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Key Discussion Points and Insights

Motivation Behind the Evoke Acquisition

[00:24–01:44]

• Strategic Expansion: Reeves emphasizes the goal to become a "very dominant European player," moving beyond the UK to diversify across six core European markets, including Italy, Spain, Romania, and Denmark.
• Market Positioning: The deal elevates Bally’s Intralot to the number two operator in the UK and bolsters diversification.
• Regulatory Focus: Reeves highlights the importance of regulated markets and strong relationships with regulators as key for long-term growth.

"We want to become a very dominant European player... This gives us the diversification we always wanted with Italy, Spain, Romania and Denmark and will continue to expand internationally. These are great regulated markets and I love regulation."
– Robeson Reeves [01:02]

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Financial Rationale and Turnaround Plans

[01:44–03:07]

• Deal Structure: Evoke valued at 52 pence/share; equity value of £743.1 million (about a 20% premium).
• Challenges for Evoke: Acknowledgement that Evoke has lost value since 2021, when it was worth over £1 billion.
• Margin Comparison: Bally's Intralot reports EBITDA margins above 40%, compared to Evoke’s 20%—pointing to potential for operational improvement.
• Cost and Marketing Efficiencies: Reeves highlights plans to address cost structures and marketing spend, leveraging Bally’s data-driven retention models to strengthen margins.
• UK Tax Hurdles: Emphasizes that recent increases in UK gaming taxes have stressed less-profitable operators, making further consolidation likely.

"Our technology is very powerful. We have a lot of data and we build, I would say, very good models which retain customers well by allowing them to spend affordably for the long term... our growth in margin and profitability has been consistent every year for... since I can remember."
– Robeson Reeves [02:16]

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Navigating Tax and Political Risks

[03:07–04:37]

• Surprise Tax Increase: Reeves expresses concern over the surprising scale of the recent UK gaming tax hike, now at 40% in iGaming.
• Strength in Margins: Their competitive margin position provides a buffer against further increases, while many smaller operators may be forced out.
• Strategic Transformation: Reeves insists the acquisition isn't a bailout, but a transformation toward a diversified, future-ready business.

"This tax increase, it was a surprise to us all how much it's increased by. With our margins being at least 10 percentage points above any of our peers, it puts us in a very strong position."
– Robeson Reeves [03:39]

"You should understand that this tax at 40% in iGaming isn't a tax on profits, it's a revenue based tax which is significant."
– Robeson Reeves [04:27]

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The Role of High Street Stores (William Hill)

[04:37–05:58]

• Physical Footprint as Brand Presence: Reeves sees high street shops as valuable for brand visibility and community engagement, but acknowledges financial pressures.
• Store Rationalization: Both William Hill and Evoke have plans to reduce their physical store footprint due to tax and staffing costs.
• Omnichannel Philosophy: While Reeves values physical presence, he admits high street stores are not core for the acquisition’s success.

"They are places where many people engage again nationally... Because not only taxes increase, there's been other costs associated with employment which has meant that many of these shops are not profitable. I hope that we can keep the high street alive."
– Robeson Reeves [05:00]

"We believe in omnichannel. We believe in having presence physically as well as online. But I would say to make this deal work for us, they are not core."
– Robeson Reeves [05:58]

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Social Responsibility & Political Criticism

[06:09–07:41]

• Addressing Criticism: In response to Labour’s Dawn Butler’s campaign to shut high street betting shops, Reeves argues most gamblers play responsibly, emphasizing the economic and employment benefits of betting shops.
• Balanced View on Gambling: Reeves calls for attention to sustainable gambling and the broader social and economic impact of policy decisions.
• Employment Impact: William Hill alone employs over 8,000 retail staff.

"I think a lot of people spend very sustainably. They spend sensibly. We only hear from the perspective of people who unfortunately have developed gambling problems. You should actually look at the large audiences who partake in gambling very safely and they enjoy it. It's a pastime."
– Robeson Reeves [06:46]

"There is significant employment and significant tax generated by people having jobs, you know, in these stores. William Hill employ over 8,000 people across their retail footprint."
– Robeson Reeves [07:35]

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Notable Quotes & Memorable Moments

• On Regulation:
  "I love regulation. We believe that the partnership that we have with our regulators is critical to future growth forevermore." – Robeson Reeves [01:16]

• On Market Consolidation:
  "If there were further tax increases, I think there'd only be one operator left. Lots of companies will go under, there'll be lots of job losses from the long tail." – Robeson Reeves [03:51]

• On Omnichannel Presence:
  "We believe in omnichannel... But I would say to make this deal work for us, [high street shops] are not core." – Robeson Reeves [05:58]

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Important Timestamps

• [00:24] – Announcement & acquisition motivation
• [01:44] – Financial specifics of the deal
• [02:16] – Margin differences and operational vision
• [03:07] – UK gambling tax environment challenges
• [04:37] – Value and future of high street stores
• [06:09] – Addressing social/political criticism and the economic impact of retail betting shops

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This episode offers an in-depth look at how Bally’s Intralot is positioning itself strategically via the Evoke acquisition—balancing growth in online gaming, evolving regulatory challenges, and sustaining legacy high street operations within a rapidly changing gambling industry landscape.

Transcript

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[Bloomberg Interviewer]

News the Greek lottery operator, the gaming operator Bally Intralot has reached an agreement to Evoke. Evoke is the parent company for a range of internationally known gambling brands, including William Hill and 888 Casino. Joining us now for more is Robson Reeves, CEO of Bally's Interlot, who joins us now after the fresh announcement just today of this M and A deal. Welcome to Bloomberg Radio. Very pleased to have you on. Just tell us about the motivation behind this acquisition. Why this purchase? Why now?

[Robson Reeves]

Well, we've chosen to acquire Evoque. We want to become a very dominant European player. We've been highly concentrated in the UK market, actually of Bally's Interlot as a B2C provider and this allows us to become a podium position operator across six core markets in Europe. We become the number two operator in the UK and this gives us the diversification we always wanted with Italy, Spain, Romania and Denmark and will continue to expand internationally. These are great regulated markets and I love regulation. We believe that the partnership that we have with our regulators is critical to future growth forevermore.

[Bloomberg Radio Host]

Right. And this acquisition, you know, valuing the company at 52 pence a share, it's about a 20% increase to the company's closing price yesterday. Total equity value of 250, £43.1 million. But of course, Evoke used to be worth a lot more and it has had a tricky couple of years. You go back to 2021 and it was worth more than £1 billion. What do you think that you would be able to do with Evoke that is going to help turn this around to help make it more profitable?

[Robson Reeves]

Well, if you look at our business and compare us to Evoque, operating Ebitda margin sits above 40% and that sits at approximately 20% and there's large similarities there. So we'd obviously have to look at the cost structure, would look at how they spend marketing money. This tax increase that recently was introduced in the UK has obviously caused challenges for various operators with lower margins. So I expect consolidation. Our technology is very powerful. We have a lot of data and we build, I would say, very good models which retain customers well by allowing them to spend affordably for the long term. It's meant that our growth in margin and profitability has been Consistent every year for. Since I can remember.

[Bloomberg Interviewer]

Yeah, that. You know, you're talking about the, the gross gaming yields tax that the UK has. Basically it's not a tax on winners or the individuals, it's a tax on the businesses, isn't it? I mean, why are you prepared to take on this increased burd in terms of the gambling tax burden and also the risks that may become with a government that is in flux, that might see a more left leaning government.

[Robson Reeves]

This tax increase, it was a surprise to us all how much it's increased by. With our margins being at least 10 percentage points above any of our peers, it puts us in a very strong position. If there were further tax increases, I think there'd only be one operator left. Lots of companies will go under, there'll be lots of job losses from the long tail. This I view as really us acquiring Evoque in order to become the business that we always wanted to become, which was far more diverse. So we're not rescuing them. It actually transforms us into the business we wanted to become. But I do expect many smaller operators to leave the market because it's simply unsustainable. You should understand that this tax at 40% in I gaming isn't a tax on profits, it's a revenue based tax which is significant.

[Bloomberg Radio Host]

And of course much of your business is now taking place online. It's a very fast growing, profitable area. But there are also, you know, hundreds of many physical shops from William Hill on high streets around the country. How important are they to your business model? How core do you see them moving forward?

[Robson Reeves]

I view them very much as a great bit of signage that we have presence throughout the country. They are places where many people engage again nationally. So there's different audiences who go, who go there. William Hill have already come up with a plan and Evoke have already come up with a plan to reduce the number of stores because they need to rationalize that footprint. Because not only taxes increase, there's been other costs associated with employment which has meant that many of these shops are not profitable. I hope that we can keep the high street alive. We've seen a mass reduction in the high street in all industries over the years. So I don't have any intention to change that. We believe we can fix the UK online business and we get these other attractive assets alongside it.

[Bloomberg Radio Host]

Would it be fair to say that the high street stores are not core to your plans for Evoque and William Hill moving forward?

[Robson Reeves]

We believe in omnichannel. We believe in having presence physically as well as online. But I would say to make this deal work for us, they are not core.

[Bloomberg Interviewer]

Okay, look, I think it's very interesting what you've told us about the agreement and sort of understanding how you see this M and A, I think, is fascinating. I want to put one other, you know, one of the tough points, I suppose, Labour's Dawn Butler, you know, she's one of the key campaigners trying to get rid of UK high street betting shops. She's, you know, talked about that quite frequently. What would your response be to that sort of political view on your business? You know, she's argued quite strongly that these sorts of shops breed poverty and addiction. What would be your response to that?

[Robson Reeves]

I think a lot of people spend very sustainably. They spend sensibly. We only hear from the perspective of people who unfortunately have developed gambling problems. You should actually look at the large audiences who partake in gambling very safely and they enjoy it. It's a pastime. Most people don't consider betting on the lottery. Gambling, it is gambling. It's a form of gambling. Similarly, there's other products which everyone partakes in, like the grand national and so on, so people can engage in gambling safely. And I believe that we should really focus on what the full domino effects of some of these decisions are. There is significant employment and significant tax generated by people having jobs, you know, in these stores. William Hill employ over 8,000 people across their retail footprint.

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