Caesars is one of the biggest gaming companies in the world and their purchase of William Hill is sure to change the face of sports betting in the United States. William Hill is one of the most recognizable names in the online sportsbook industry and this move will surely bring a host of new opportunities for both entities.
William Hill One of the Most Trusted Brands
In terms of reliable sportsbooks, William Hill is a name that should be at or near the very top of the list. Founded in 1934, the British based bookmaker has changed hands many times but this move takes them to an entirely different level. To make things clear, William Hill is already a global brand, having been listed on the London Stock Exchange since 2002. The company employs over 10,000 people with offices all over the U.K. They have over 1400 licensed betting shops and they claim to process more than one million betting slips a day.
The company has also had a presence in the United States for close to a decade now. In 2012, they purchased Lucky’s, Leroy’s and the satellite operations of Club Neva in Nevada for a total of $53 million. That move gave William Hill a strong presence in Nevada, accounting for at least 10% of sportsbook revenue in the state. They also have a presence in New Jersey, the one state that has challenged Nevada for the number one spot in terms of sportsbook handle. In Atlantic City, William Hill operates sportsbooks at Ocean Casino Resort, Tropicana, Bally’s and Harrah’s.
Caesars Takeover Subject to Shareholder Approval
The deal is still pending shareholder approval on Caesars end although many feel that is simply a formality. There have been some provisions put in place by Caesars that will assure that current William Hill employees are well treated. Caesars pledged to maintain existing employee terms and conditions until the end of 2022. A deal this size won’t happen quickly considering the global profile that both companies have.
The reported sale was for $3.7 billion dollars which gives a better idea of just how big this move is. For more context on how big William Hill is, think about the fact that Manchester United has a reported value of $3.9 billion and you start to realize that this move will have huge ramifications on several continents. With this move, Caesars is officially one of the big boys in the sportsbook industry. The company has always been one of the most renowned names in the gaming industry but not that PASPA has made sports betting legal in several states, this move suddenly makes them big time players in this market.
Sports Bettors in United States Will Benefit
As every sports bettor knows, the bigger the market the more betting options you have and the ability to shop for the best line becomes more realistic. While that is true for every retail business, sports bettors in the United States have always lacked options until sports gambling was legalized in 2018. Although they are a foreign entity, William Hill has had a presence in the U.S for quite some time as we mentioned previously. Now that they are owned by an American brand, this will only propel the company to the forefront of the sports gambling market in the country.
With Caesars Entertainment’s extensive history in the gaming world and their incredible marketing ability, it will not be long before sports bettors in the United States recognize William Hill as one of the most trusted sportsbooks for them to do business with. Other brands in the market like DraftKings and FanDuel will have to be on notice that there’s a new player in town and their pockets are deep.
Deal to Focus On U.S Based Interests
Caesars Entertainment has made it clear that they are interested in William Hill’s assets in the United States. They have also said that they will be looking to sell off William Hill’s assets in the U.K and other countries. Caesars CEO Tom Reeg said that he expects William Hill’s sports betting expertise to compliment Caesars current offerings which will enable the combined group to better serve their customers.
This move comes at a perfect time for William Hill with their fortunes having taken a sharp turn in the wrong direction when the British government limited the amount that it could charge at betting terminals. This move had a huge effect on their bottom line and the current pandemic has only made their financial situation worse. William Hill chairman Roger Devlin was quoted as saying (the board) believes this is the best option for William Hill at an attractive price for shareholders.”
Whatever the case, this is amazing news for sports bettors in the United States where more and more states are joining the market. There are 18 states plus Washington D.C that now have fully operational sports betting markets. Another four states have passed bills legalizing sports gambling but are not yet accepting bets. Now that it appears William Hill is here to stay, American sports bettors will have access to one of the biggest brands in the world.
