Known for its plush, high-end casinos, thousands of slots and table games, and both online and offline gaming entertainment, Caesars Entertainment Group has made a huge mark in the gaming industry. The gaming and entertainment giant owns a variety of resort casinos in Las Vegas as well as other destinations.
It now seems that the group is determined to try and buy a sports betting giant that has been rapidly expanding across the United States. William Hill, which is a British bookmaker, has been opening up retail sportsbooks in many states across the USA. This has resulted in the share price of the operator socket. Share prices increased further on the back of speculation that Caesars was planning to put in a bid to buy William Hill.
Speculation Comes to an End
Speculation about Caesars putting in a bid for William Hill has been rife for some time. However, officials from the entertainment and gaming group recently put an end to this speculation, confirming that they did indeed intend to make a bid.
While speculation was ongoing, share prices for William Hill shot up by more than 43 percent, and this valued the sportsbook at $3.73 billion. Caesars has said that it will continue to make more announcements about its bid when the time is right, so this could provide further fuel for William Hill share prices. However, in the short-term, there has been a drop of 12 percent in share prices since Caesars confirmed its intentions.
An official from Caesars Entertainment said, “The opportunity to combine our land-based casinos, sports betting and online gaming in the U.S. is a truly exciting prospect. William Hill’s sports betting expertise will complement Caesars’ current offering, enabling the combined group to better serve our customers in the fast-growing U.S. sports betting and online market.”
Rivalry for William Hill
It seems that Caesars is not the only big corporation that expressed an interest in acquiring William Hill. It has now emerged that Apollo Global Management is also very interested in bidding on the British bookmaker.
In fact, William Hill has admitted that it has received bids from both Apollo and Caesars. The deadline for the declaration of intentions was set for 23rd October, but Caesars has reportedly already done this.
Last year, William Hill and Caesars were in talks about merging. However, this deal fell by the wayside, and talks came to an end. If this latest proposal is successful, it could lead to a major deal that could present new opportunities for both companies. According to the figures, the deal could result in Caesars generating hundreds of millions in revenue next year if it all goes smoothly.
The deal that has been struck is a $2.9 billion one, and after agreeing on the deal William Hill officials said that it was the best option for both the company and for shareholders.
Future Plans for William Hill
With the Caesars takeover, executives are now looking at what the future holds for William Hill. In the UK, the bookmaker had to close its High Street branches because of the impact of COVID-19. When businesses started to reopen, the company decided to keep more than 100 branches closed. This is because the level of custom was expected to be far lower than prior to the pandemic.
Caesars says that it plans to find other owners for branches outside the United States, and this includes its branches in the United Kingdom. In addition, it plans to integrate the William Hill US business into the Caesars Group with as few job cuts as possible.