William Hill cools Caesars merger talk amid media speculation
London-listed operator sews up CG Technology acquisition and quells online gaming tie-up rumors
William Hill has moved to supress suggestions it is nearing a multi-billion-pound merger of its US online gaming portfolio with US sportsbook partner Caesars Entertainment.
The move comes after Bloomberg claimed Hills was in discussions with the US casino and hotel resort operator over a combination deal which, if realised, could generate an extra $700m (£524m) annually.
In the article, Hills US CEO Joe Asher was quoted as saying: “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.”
In a statement provided to EGR, the London-listed operator said: “We occupy a strong market position in US sports betting and our long-term objective is to be a market leader. We work with our US partners to explore the path to maximising the value of our US assets.”
William Hill’s share price rose by 1.54% in early trading on the London Stock Exchange to 175.20p.
Hills is counting on the US for future growth and the operator expects to obtain a 29% share of the US sportsbook market following the integration of 29 live sportsbooks belonging to Caesars onto its platform.
The firm’s sportsbook ambitions were further buoyed by the merger of Caesars with fellow US operator Eldorado Resorts earlier this year, as well as its deal with US broadcaster CBS Sports.
Some analysts have suggested Caesars could be tempted to to buy William Hill outright in the future, considering the successful relationship between the two parties in the US to date.
Speaking to EGR about the potential impact of a deal, RB Capital co-founder Julian Buhagiar hailed William Hill CEO Ulrik Bengtsson for making Hills attractive to potential suitors, claiming a recent rise in the operator’s share price was proof of interested parties.
Buhagiar suggested that while there were potential synergies to a Caesars/Hills merger, a deal might not be the best solution for both entities.
“To finance any deal, Caesars would have to either go through the lengthy process of developing a Special Purpose Acquisition Company (SPAC) or through a private equity-based deal similar to that of CVC Partners when they bought Sky Bet,” Buhagiar said.
“For that to happen, Caesars would have to go through a significant break,” he added.
“It’s not a completely wrong switch and they do have the firepower to be able to acquire an asset like this. I strongly suspect they have considered it in the past and just weren’t ready or it wasn’t at the right price,” Buhagiar concluded.
Elsewhere, William Hill US has completed the acquisition of Nevada-based sportsbook operator Cantor CG Technology, adding four new sportsbooks to its Las Vegas portfolio.
The takeover of CG Technology was first announced in November 2019, but has been stalled awaiting regulatory approval from the Nevada Gaming Commission, which was granted last week.
William Hill branded sportsbooks are now open at The Venetian Resort, The Palazzo Resort, The Cosmopolitan of Las Vegas and Silverton in Las Vegas.
Speaking about the completed acquisition, Hills US CEO Joe Asher said: “William Hill has long been the leading sportsbook operator in Nevada.
“This acquisition further expands our footprint, giving us a bigger presence on the Las Vegas Strip at several world-renowned resorts.
“It’s a very exciting time for our company as we continue to grow and introduce our offerings to new customers,” he added.