The pact officially overcame its last hurdle
American casino giant Caesars Entertainment, Inc. on Thursday completed the acquisition of British sportsbook William Hill in a $ 4 billion deal. Last Thursday, William Hill withdrew from the London Stock Exchange and Caesars assumed full ownership and control of the operator's land and digital assets.
The deal was originally announced last September when William Hill chose Caesars' bid over a rival bid from US private equity firm Apollo Global Management and took effect on April 22 when the UK High Court gave the green light. The court, which held a hearing on the acquisition in late March, delayed its ruling for a few weeks after several hedge funds with stakes in William Hill submitted letters to its board of directors, arguing that the bookmaker had not disclosed information about the agreement before the shareholders' vote in November.
Clearly, Caesars has had a competitive advantage in the pursuit of William Hill. The companies have a sports betting joint venture in the United States, in which Caesars owns 20% and William Hill owns 80%.
This deal gives Caesars control of over 1,400 land based betting shops across the UK.
Caesars announced that the addition of William Hill gives it the ability to maximize opportunities within the US online casino and sports betting space, currently expanding sports betting services in 18 states, 13 of which offer mobile betting. This deal would give Caesars control of 1,400 land based betting shops across the UK, as well as online sports betting domains. The company expects to be operational in 20 jurisdictions with legal sports betting by the end of the year. There are currently over 170 William Hill retail sportsbooks in the United States, representing a 29% market share.
This acquisition further expands the reach of the casino operator's loyalty program, Caesars Rewards, by giving William Hill customers access to the program and the ability to earn tier status that they can use on all land properties and on Caesars line. The deal also allows Caesars to offer a unique wallet offering of digital gaming and betting products in the future.
Tom Reeg, the CEO of Caesars, said in a statement that they are delighted to complete the acquisition of William Hill, combining two of the major operations in the sports betting and iGaming industries under one roof. In the near future they hope to announce more sports partnerships that will drive the firm's long-term growth.
A rough year for William Hill
William Hill has been hit hard by the coronavirus pandemic, leading him to permanently close more than 100 of his UK stores, which were already under pressure from increased regulation and the shift to online gambling. The United States has been a high growth area for William Hill in recent years, contributing 7% of the group's revenue in the first six months of the year.
What's next for the extended group?
Caesars confirmed that it has plans to divest William Hill's non-US operations after its acquisition is closed. The British gambling firm is the third-largest sports betting operator in the US, and its new owner plans to focus its attention on further growth.
However, it has apparently started looking for buyers for William Hill's UK online and retail operations, as well as its international online gambling business. Several potential buyers are known to have expressed interest in acquiring the non-US sportsbook division, such as Apollo and gambling operators 888 and Entain.
GVC 888 Holdings CEO Shay Segev said that if the pricing is right, the purchase of William Hill's UK and international business is "something we can definitely consider." The two companies have had talks, but never reached an agreement between them.
The US online casino and sports betting market is expected to grow to $ 18 billion in revenue by 2025, with the top three players in market share being Flutter Entertainment PLC with 28%, DraftKings Inc. with 20% and Caesars with 12% , according to Macquarie Research.
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