Pennsylvania Licensing Hurdle for Bally's Acquisition of Evoke

Bally's Intralot's plan to acquire Evoke could face a regulatory obstacle in Pennsylvania. Evoke's B2B agreement with Caesars conflicts with licensing rules that concern the buyer's parent company in the US. Whether the deal closes on time depends on whether state regulators accept the proposed solution.

Evoke largely withdrew from the US consumer market after its Sports Illustrated partnership ended in 2024. However, its subsidiary 888 Atlantic continues to provide technology, player account management and customer support in Pennsylvania for Caesars' WSOP online product. The problem stems from rules concerning companies that hold both an interactive gaming manufacturer license and an interactive gaming certificate. Bally's Corporation's subsidiary Bally's Pennsylvania holds two certificates.

The companies propose that 888 Atlantic surrender its Pennsylvania manufacturer license and complete the wind-down under interim arrangements. Evoke said the deal is progressing as planned and most approvals have been obtained. However, it was reported that the office of the Pennsylvania Enforcement Counsel has advised against this solution. The final decision rests with the Pennsylvania Gaming Control Board. If the solution is approved, additional measures are foreseen, such as weekly reporting and a final sign-off before the license is surrendered.

Evoke is going through a difficult period. Third-quarter revenue came in at £406 million ($540.36 million), down 7 percent. 270 UK betting shops were closed due to pressure at William Hill. Analysts generally view the acquisition positively because it will ease the debt burden. However, normal license review is said to possibly take more than nine months, which could push closing beyond the target of Q4 2026 or Q1 2027.