illiam Hill is in discussions to merge its US gambling business with the online casino operations of Caesars Entertainment.
William Hill US announced Tuesday the acquisition of CG Technology, following last week’s approval from Nevada. Beginning Tuesday, William Hill now operates four additional sportsbooks on the Las Vegas Strip.
Caesars already owned 20% of William Hill US under a deal with Eldorado Resorts, which took over Caesars in July. William Hill has run Eldorado's sportsbook exclusively since 2018, and anticipated the casino operator would acquire its rival.
William Hill US CEO Joe Asher confirmed the company is in discussions with Caesars about combining their sports-betting and online-gaming businesses, and he told Bloomberg: “There’s a lot of opportunity in there, and we think that we’ve got some really powerful assets in this space, so obviously it’s an ongoing subject of discussion.” William Hill always assumed Eldorado might end up owning Caesars, Asher said. “We’ve been riding on their coattails as they’ve been growing. Clearly, we bet on the right horse.”
William Hill US CEO Joe Asher.
The merger could value the combined operations at around $7 billion, and the U.S. sports and online-gaming operations of the two could generate $700 million in revenue next year, Caesars said previously. As a separately listed entity, it could sport an attractive market valuation at a time when DraftKings is worth more than $13 billion.
“William Hill is our partner solely on sports betting,” Caesars CEO Tom Reeg told Bloomberg in July. “You’d be gathering all our your mobile assets, both sports and online. That would be ideal.”
William Hill acquired exclusive rights to run the sports-betting operations at Eldorado’s casinos in September 2018. The latter’s takeover of Caesars in July extended their deal to iconic properties like Caesars Palace. About 15 additional locations should be added in the coming weeks, including the Horseshoe in Council Bluffs, Iowa, and the Harrah’s in Atlantic City, New Jersey. They would bring William Hill’s total to 170 retail locations in 13 states, the company said. Recently, William Hill introduced online casino betting in New Jersey.
The CG Technology purchase, which took effect Tuesday, was valued at less than $50 million, as reported by Bloomberg, and included funds related to previous litigation between the companies.
William Hill branded sportsbooks are open at The Venetian Resort, The Palazzo Resort, The Cosmopolitan of Las Vegas, and Silverton in Las Vegas. New offerings include self-service kiosks, an expanded wagering menu featuring LIVE InPlay Wagering on the app and over the counter, and compelling rewards club offers.
“William Hill has long been the leading sports book operator in Nevada. This acquisition further expands our footprint, giving us a bigger presence on the Las Vegas Strip at several world-renowned resorts,” Asher said in a press release. “It’s a very exciting time for our company as we continue to grow and introduce our offerings to new customers.”
William Hill US currently operates 124 race and sportsbook locations across the state of Nevada, along with the state’s leading mobile sports betting app.