US casino giant Caesars to buy UK betting group William Hill

United States casino giant Caesars Entertainment on Wednesday, September 30, announced a deal to buy United Kingdom betting group William Hill, which has a large online sports gambling presence in the US.

The deal worth £2.9 billion ($3.7 billion, 3.1 billion euros) is subject to shareholder approval.

“The opportunity to combine our land-based casinos, sports betting, and online gaming in the US is a truly exciting prospect,” Caesars chief executive officer Tom Reeg said in a statement.

“William Hill’s sports betting expertise will complement Caesars’ current offering, enabling the combined group to better serve our customers in the fast-growing US sports betting and online market.”

“We look forward to working with William Hill to support future growth in the US by providing our customers with a superior and comprehensive experience across all areas of gaming, sports betting, and entertainment,” he added.

US gambling activities are on the rise after the country’s Supreme Court legalized sports betting in 2018.

The deal values each William Hill share at 272 pence, up 58% compared with its closing price at the start of September when Caesars made an initial approach. 

“Although William Hill’s online business lags behind some of its rivals, it boasts a 29% share of the US sports betting market and Caesars already owned a 20% stake in its US operations,” noted Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown.

Caesars said it intends on disposing of William Hill’s core UK business, whose brick-and-mortar betting shops have suffered owing to coronavirus restrictions.

“Caesars’ strategic focus remains on the opportunities immediately evident in the US market at this stage,” the American group said on Wednesday. – Rappler.com