American casino operator Bally’s is reportedly nearing a potential acquisition of Evoke Group, the heavily indebted owner of the William Hill betting brand, according to sources familiar with the matter. The Rhode Island-based company, known for sponsoring Nottingham Forest Football Club, has been granted preferred bidder status by Evoke and could announce a rescue deal as early as this week if terms are finalized. However, discussions remain delicate, and there is no guarantee of a completed transaction.

Evoke, formerly listed as 888 Holdings on the FTSE 250, has been struggling under a debt burden of approximately £1.8 billion while its market valuation has plunged to around £160 million. The company sparked a wider investor review in December after appointing Morgan Stanley and Rothschild to explore strategic options aimed at maximizing shareholder value. Financial pressures have mounted since Evoke’s £1.95 billion purchase of William Hill’s non-U.S. operations in 2021, which was financed largely through leveraged loans.

The William Hill brand, a longstanding name in the UK betting industry dating back to 1934, was acquired after 888 Holdings outbid private equity firm Apollo. The mounting debt was exacerbated by changes in the UK government’s betting taxation regime implemented last November. These reforms, influenced by former Prime Minister Gordon Brown’s call for increased industry levies, raised remote gaming duty on online casino and bingo from 21% to 40%, and increased tax on online sports betting from 15% to 25%, excluding horseracing. Evoke’s leadership, led by Per Widerström, has estimated these tax hikes will cost the company between £125 million and £135 million annually.

In response to financial challenges, Evoke announced plans to close about 200 William Hill betting shops starting in May, targeting roughly 20% of the business’s 1,200 locations. Industry insiders have confirmed that around 240 sites have been earmarked for closure, as the company seeks to streamline operations and reduce costs.

Among prospective buyers, Bally’s has emerged as the frontrunner, while other interested parties, including Fred Done—reported as one of Britain’s largest taxpayers—have reportedly withdrawn from the bidding process. Bally’s itself has a history of strategic acquisitions, having purchased former FTSE 250 firm Gamesys in 2021 for $2.7 billion. The company traces its origins back to 2004 and underwent multiple rebrandings and ownership changes before adopting the Bally’s name in 2020, following the acquisition of the brand from Caesars Entertainment.

As the negotiations continue, stakeholders await a possible agreement that could reshape ownership in a sector grappling with rising costs and regulatory headwinds.