The US casino operator, Caesars Entertainment issued a joint statement with the British bookmaker William Hill today. In it, the two confirmed that they were involved in advanced talks for Caesars to buy WillHill for $3.7 billion.
Caesars Entergtainment said that it would offer $3.45 per William Hill share.
Part of the joint statement read:
“The opportunity to combine our land based-casinos, sports betting and online gaming in the US 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 US sports betting and online market.”
Despite the fact that the offer undervalues William Hill, the bookmaker’s board is expected to recommend the offer to its shareholders.
Reuters reports that Caesars first approached William Hill at the beginning of the month with its offer.
William Hill owns around one third of Nevada sports betting, and is fast expanding in other states. The deal will give Caesars Entertainment total control over the pair’s joint venutres in the US. Caesars currently holds just 20% of the JV assets.
Analysts predict that Caesars could immediately enter into a separate deal (possibly with the buyout group, Apollo), to sell off William Hill’s non-US businesses, which include 1,500 betting shops in the United Kingdom.
Caesars cited sources that valued the US gaming market at upwards of $35 billion.
“Caesars believes that the sports betting and online gaming sector represents one of the largest areas of growth in the US gaming industry,” said the company.
Following the news, shares in the London-listed William Hill surged over 40% on Friday, before stumbling 11% on Monday.
Experts believe that, should the deal be approved, it isn’t expected to close until the second half of 2021. It is hoped that, by then, the sporting calendar on both sides of the Atlantic will be back in full swing.
