William Hill US acquires CG Technology sportsbook assets
Sports betting operator expands Las Vegas strip offering with six-hotel deal as US revenues increase 60% in latest trading update
William Hill US has acquired the sportsbook assets of CG Technology’s for an undisclosed fee, it was announced yesterday.
The deal includes six Nevada-based sportsbooks located on the Las Vegas strip at hotels including The Tropicana, The Cosmopolitan, The Venetian, The Palazzo, the Palms and the Silverton Casino Hotel.
The provision of a betting platform and risk management to the Atlantis hotel on Paradise Island in the Bahamas is also included.
The transaction is expected to complete, subject to regulatory approvals from authorities in Nevada and the Bahamas, during H1 2020.
Joe Asher, William Hill’s US CEO, hailed the expansion of Hills’ Las Vegas footprint to several marquee resorts on the Las Vegas Strip.
Previously the company operated 113 racing and sports betting books in Nevada but lacked a significant presence on the strip.
“We look forward to working with our new casino partners and transitioning CG Technology’s retail and mobile customers to our award-winning offering,” Asher added.
$WMH In regards to the @CGTechnology_ deal… When asked about numbers/consideration on the analyst call this am Ulrik said it is "not material at this point"… and that is was a case of consolidation to strengthen their home market in Nevada. pic.twitter.com/nt7vskr0S1
— Alfonso Straffon ?????? (@astraffon) November 21, 2019
Back in 2018, CG Technology was ordered to cease offering sports betting technology by the Nevada Gaming Control Board after it found the company had accepted out-of-state wagers in its Cantor sports book (CSB) during 2016 and 2017.
The company initially received a $250,000 fine for these infractions, but later agreed a $2m reparatory settlement with the Nevada Gaming Commission to retain its sports betting licence.
Speaking about the conclusion of the deal, CG Technology CEO Parikshat Khanna welcomed the agreement to sell CG Technology’s sportsbook assets and said she looked forward to a “seamless transition” for its clients to William Hill’s offering.
The group today reported US year-on-year revenue growth of 60% (53% in local currency), in a trading update covering the 17 weeks to October 29 2019.
Amounts wagered increased 24% across its already live partnerships while its expansion into new states saw amounts wagered rise 338%.
UK analyst firm Regulus Partners said the firm has a 26% share of the US market, “though the overall share figure is very much flattered by its legacy Nevada position and piecemeal retail-only markets.”
“WH must still demonstrate operationally that it is capable of taking significant online market share in competitive markets from the DFS-led operators in order to demonstrate that the strategic opportunity is a tangible and deliverable one – this remains an open question, in our view,” the note said.