William Hill, one of the premier bookmakers in the UK gaming market has been on a spending spree recently. The company has now finished buying CG Technology, which used to be the sports betting division of Cantor Fitzgerald and completed its acquisition process earlier this week.
William Hill is also focusing on the growing US sports betting market and wants to position itself to be in a strong position. This is why the operator has opened talks with longtime partner Caesars Entertainment Inc. to acquire its online gaming division.
Joe Asher, US CEO for William Hill, has confirmed that the company is holding talks with Caesars on plans to combine their sports-betting and online-gaming businesses.
Caesars has 20 percent ownership of William Hill’s US operations thanks to the deal two years ago with Eldorado Resorts Inc. Given the fact that sports betting is expanding rapidly in the United States and iGaming is also gaining momentum, this move comes at the right time.
If William Hill and Caesars do combine forces, experts predict that they will bring in $700 million in revenue in 2021. This is an impressive amount considering the various competitors in the field which include DraftKings and FanDuel.
Caesars already has an exclusive deal in place with William Hill for sports betting. A super-merging of both companies would be a major force on the market. This exclusive deal is in place due to the deal William Hill made with Eldorado to run all sports betting operations. This deal was made back in September 2018.
Mutual Beneficial Partnership
Asher said that this strategic partnership was always part of the plan. William Hill expected Eldorado to acquire Caesars and have been riding on their coattails since the deal’s signing. Experts predict that Caesars and William Hill’s combined U.S. online operations can have a price tag of around $7 billion. Market analysts also predict that it will eventually result in a publicly traded joint venture operation.
William Hill will benefit immensely from acquiring Caesar’s online gaming operations. The UK bookmaker is looking to have a strong presence in the US market and the acquisition will give it a strong market position.
William Hill recently introduced iGaming in New Jersey. The operator will look to continue to improve its online casino offerings and this deal with Caesars will speed up the process. There is no indication as of now as to how long it will take for William Hill and Caesars to finalize this deal.