Moody’s Investors Service has labelled the proposed purchase of Evoke Plc by Bally’s Intralot a positive development for the struggling operator, saying the deal would ease refinancing pressure and improve liquidity conditions post-acquisition.
Moody’s Highlights Debt Relief in Bally’s–Evoke Transaction
The deal is worth around £243 million ($325 million) and will see Bally’s Intralot acquire Evoke, the group behind well-known brands including William Hill and 888casino. The deal’s structure introduces new committed financing of approximately $1.19 billion that is key to alleviating near-term debt concerns at the target company, Moody’s said.
Evoke also has been carrying a large debt load, estimated at about $2.5 billion at the end of last year, largely related to its previous expansion into international betting markets. Analysts at Moody’s said the purchase significantly reduces the risks associated with future refinancing needs, especially for debt maturing later in the decade.
The ratings agency also said that holders of Evoke’s 2030 and 2031 notes have already agreed to a change-of-control arrangement that enables the transaction to go through without early redemption requirements being triggered. Meanwhile, lenders under the company’s revolving credit facility agreed to increase available commitments, providing further financial flexibility.
Moody’s Highlights Long-Term Gains and Stability in Evoke Takeover Deal
Moody’s has affirmed its B3 rating on Evoke with a stable outlook, noting that risks have diminished, but the company remains highly levered. The agency added that it does not expect any immediate change to credit metrics given that the capital structure will largely remain in place until the deal closes, which is expected between late 2026 and early 2027.
However, Moody’s said an upgrade could be possible once the transaction is completed. Analysts said the existence of new senior financing that ranks below existing debt could improve the risk profile of certain instruments, particularly the senior secured notes.
However, Moody’s also cited longer-term strategic benefits beyond the balance sheet effects. The combination of Bally’s data-driven technology platform and Evoke’s large customer base is expected to enhance targeting, reduce marketing inefficiencies, and drive stronger cash generation. Such integration may slowly improve profitability as operational synergies are realized, the agency said.
The broader deal is a sign of the continuing consolidation in the European betting and gaming sector, where companies are increasingly seeking scale to absorb higher regulatory costs and tax pressures. In the UK market in particular, higher online gaming taxes have put significant pressure on the industry and accelerated the need for structural solutions such as mergers and acquisitions.
There are challenges, particularly around taxation and leverage, but Moody’s view is that the transaction is a stabilizing step for Evoke’s financial outlook and a potential basis for future credit improvement once integration is complete.