Everyone has heard of Caesars casino in the United States of America and now the brand is setting its sights on the UK market as its owner has acquired the gambling firm William Hill for around £2.9 billion.
No Need to Make a Bet on this New Deal
All bets are off on who will be taking over William Hill. There were two horses in the race – Caesars Entertainment and Apollo, a US private equity firm. However, with a clear lead was Caesars after putting in an offer of £2.9 billion and securing a ‘minded to recommend’ nod from the board at William Hill.
Unfortunately for Apollo, it looks like they didn’t even cross the start line in this race with this offer from their competition. Caesars has a joint venture currently with William Hill in the US, which, if Hill decided had to go with Apollo, could mean the end of their existing partnership. This is a Nevada based betting operation, bought for $50 million in 2012, of which Caesars owns 20%.
The share prices of William Hill dramatically rose as it looked like a competition would ensure, but now that doesn’t appear likely, share prices have slumped back down again.
Why Is Caesars Desperate to Purchase William Hill?
It may seem like an unlikely partnership, but both Caesars Entertainment and Apollo have their sights set on William Hill as their expertise in sports betting and online gaming could help them to take advantage of new opportunities arising in the USA.
While sports betting has been around for over a century, surprisingly this isn’t the case in America with it only being legal in Nevada. Since 2018, this has changed and it has become legal in other states and this is where the market is growing at a rapid pace.
This is also a great deal for William Hill as they have been struggling in the UK market, partly due to many of the new rules and regulations coming into force in recent years from the government.