William Hill enters Michigan, US market offsets company's UK decline in 2019

William Hill and the Grand Traverse Band of Ottawa and Chippewa Indians announced Monday a long-term partnership that will see the bookmaker become the tribe’s exclusive provider of online sports betting and online casino gaming throughout Michigan, with plans to open a retail William Hill sportsbook at Turtle Creek Casino & Hotel this year, pending regulatory approvals. The agreement follows the signing of legislation in December 2019 legalizing both sports betting and online gaming in the state.

The William Hill sportsbook will be located in the current Onyx Sports Bar at Turtle Creek Casino & Hotel, with a satellite location at Leelanau Sands Casino.  Both are expected to open prior to the 2020 football season, pending regulatory approvals. William Hill plans to launch online casino gaming and sports betting when permitted under Michigan regulations.

“We are pleased to have found a great partner in the Grand Traverse Band of Ottawa and Chippewa Indians and look forward to working with the Tribe to bring a leading retail and online sports betting experience to sports fans in Michigan,” said Joe Asher, CEO of William Hill US. “Michigan will be a key state in William Hill’s U.S. expansion due to its large population and deep rooted-sports culture with so many popular college and pro sports teams.”

Michael Schrader, CEO of Grand Traverse Resort & Casinos, was equally pleased to partner with a clear leader in sports betting and online casino gaming industry. “It was important for us to find a partner with a great sports betting and gaming brand that has proven experience throughout the US market,” said Schrader. “William Hill’s expertise in sports betting operations and marketing and strategic media partnerships will ensure that we are able to attract customers from throughout the State of Michigan to the online products while offering another great amenity to attract guests to our casinos. We look forward to working with William Hill to develop the best sports book in northern Michigan at Turtle Creek Casino.”

Full-year 2019 results

William Hill posted Wednesday 2019 profits ahead of expectations, despite closing more than 700 betting shops.

The company reported a 52% decline in adjusted pre-tax profits to £96.5 million for the year to December 31. It said the decline was driven by the UK Government’s crackdown on fixed odds betting terminals (FOBTs), with the maximum stake decreased from £100 to £2.

William Hill said it shut 713 retail stores in the UK during 2019 on the back of the stake increase, but profits were not as heavily impacted as previously forecast. The firm said the closure of shops following the FOBT changes resulted in a £67 million hit to profits during the year. Its total revenues across the group dipped 2% to £1.58 billion as it was buoyed by growing markets, such as the US.

US revenue increased by 38% during the year after it launched a new digital platform in the region. Growth in the region helped to offset UK decline, where net revenue fell 13% on a like-for-like basis, although this was at the higher end of the firm’s expectations.

Furthermore, the firm said profits for the current year could be impacted by the Gambling Commission’s latest crackdown, which will see online credit card bets banned from April. It said the move is expected to impact its 2020 profits by between £5 million and £10 million.

William Hill CEO Ulrik Bengtsson commented: “2019 was a year of transition during which we executed on our ambition to diversify internationally with the acquisition of Mr Green and the continued strong growth of our US business. The Group delivered a strong operating performance, ahead of our expectations and against a challenging regulatory backdrop. Our industry is evolving and this brings great opportunities, underlining the importance of our efforts to reposition the business. We look forward to building on these foundations with a renewed focus on customer, team and execution.”