Caesars Entertainment Comfirms $2.9bn Bid for William Hill
Casino giants, Caesars Entertainment, has put forward a bid to buy bookmakers, William Hill, for a massive $2.9bn. Caesars Entertainment is the 3rd largest casino group in the world. They own the famous Caesars Palace on the Las Vegas strip, as well as many other casinos on the strip and worldwide.
What’s Going to Happen to William Hill’s Bookmakers in the UK?
The latest move could be worrying for those of you who visit the William Hill high-street outlets. This is because American companies generally have little experience in sports betting.
There’s a potential for them to get it wrong big time, and many sports have only just made a comeback after lockdown. We don’t want sports to go wrong all over again. Yes, some of us had fun betting on crazy sports, but we don’t want anything messing with our sports bets again.
Fortunately, sport-bets lovers don’t have to worry because Caesars aren’t planning to keep their UK bookmakers at all. Instead, they will sell off their high-street outlets shortly after the acquisition completes. They will keep the online casinos, though.
Why Are They Buying William Hill?
For those of us who are only familiar with William Hill as an online and offline bookmakers in the UK, Caesars Entertainment’s takeover may seem odd. Caesars is known for casino games and online casinos, not sports betting. However, the group has its eyes firmly on William Hill’s US operations, in which it already holds a 20% stake. These operations relate to US sports betting and online casinos.
If you follow our news blog, you may remember a recent piece about the arrival of sports betting in the USA. It’s an industry that’s growing exponentially, and the acquisition of William Hill will help Caesars to capitalise on the new opportunities that US sports betting presents.
Tom Reege, Caesars’ CEO, said:
“William Hill’s sports betting expertise will complement Caesars’ current offering, enabling the combined group to better serve our customers in the fast-growing US sports betting and online market”
Is It a Sure Bet?
The takeover still needs shareholder approval, so the purchase isn’t set in stone quite yet. Nonetheless, it’s a move that makes a lot of sense for all parties involved. As the USA is about to enter some boom years for sports betting, the UK’s sports betting industry is on a downward trajectory because of increasing legislation and protection for gamblers.
And, of course, we need to mention the elephant in the room: coronavirus. It’s taking a significant toll on sporting events, and consequently, on people’s engagement with sports in general.
There’s certainly risks involved in this acquisition, but the possible returns will be huge if they manage it well. Time will tell if it’s the right call.