Caesars Entertainment agrees to buy William Hill in $3.7b Mega Deal
By Space Coast Daily // November 3, 2020
2020 has been a tough year for the land-based and online gambling industry, with everyone being affected by the pandemic.
Some people have suffered more than others and some businesses were hit the heaviest, with the brick-and-mortar casinos being some of the main the teams.
Caesars Entertainment owns both traditional and Internet operators and the company is ready to continue its expansion. It announced that it is willing to spend $3.7 billion to acquire William Hill, a global sports book.
A major milestone for US gambling
In recent years, Americans have noticed the emergence of a trend, as online casinos and bookmakers are returning to US shores. As states are slowly passing bills to legalize online gambling, sports betting fans are once again optimistic about what the future might bring.
Caesars Entertainment is a major gambling group and its willingness to spend such a huge amount on one of the biggest online bookmakers speaks for itself. They already have one of the largest casinos in the US and with this acquisition it will also own one of the most prestigious sports books worldwide.
The willingness to spend $3.7 billion on a famous brand is quite impressive but not sufficient to cement the acquisition. That’s because the Nevada Gaming Control Board and the Nevada Gaming Commission need to approve the transaction which should close in the second half of next year.
Sale of non-US assets is also expected to finance the deal, in conjunction with a mix of cash and equity offering. It’s a big move that the casino giant considers to be the right one, in spite of the turmoil created by the pandemic.
A three party deal with ESPN
Caesars and William Hill will become one in the wake of this merger, and will continue their partnership with ESPN. The two gambling companies along with playUK.com are already broadcasting odds through The Linq Promenade using the resources of the ESPN.
Once sports betting will be legal in more US states, this partnership will start to pay dividends on a national scale. For the time being, it provides William Hill with an opening to cater to US players and potentially expand its presence in the United States.
The two companies already have a dominant position in the US, with a 20% market share and 80% equity ownership. For the global bookmaker, the partnership with Caesars Entertainment is vital, as it will allow them to provide residents of multiple stakes with access to its betting offer.
Caesars, Harrah’s, Horseshoe and Eldorado are some of the brands under which land-based casinos already operate. It will be possible for punters to bet on sports and non-sporting events at these locations and take advantage of top odds.
Caesars Entertainment is already involved with several sports clubs in the US, especially in the NFL and it hopes to expand its reach in 2021. Shareholders are justly enthusiastic about this move and not surprisingly, the shares closed at a few percentages higher after the deal was announced.