William Hill Eyes Caesars Entertainment Following CG Technologies Buyout
London-based Bookmaker William Hill plc is eyeing a merger with Caesars Entertainment Inc. following the successful takeover of CG Technologies. According to William Hills’ American CEO, Joe Asher, the company is currently locked in negotiations with Caesars about combining their online gambling and sports betting endeavors.
Combined, the online gambling portfolio could potentially generate $700 million in revenue in the next year. There is room for improvement, however, as the market leader, DraftKings Inc. is worth over $12 billion. A sizeable market share that Caesars has been eyeing for a while now. Bringing William Hill on-board could be the missing link in the chain, as the latter owns a substantial stake in the online sports wagering market.
The Perks of Merging with Caesars Entertainment
Caesars “owns” 20% of William Hill’s US operations through an exclusive deal with Eldorado Resorts Inc., back in September 2018. The latter taking over Caesars’ online operations in July 2020 gives William Hills unabridged access to iconic properties like Caesars Palace. With an additional 15 properties waiting to be included.
A few renowned resorts on the list includes Harrah’s in Atlantic City and the Horseshoe in Council Bluffs, Iowa. With this addition, William Hill’s current tally rises to 170 properties across 13 US states. According to an independent analysis, a complete merger could be worth $7 billion. Although a publicly traded joint venture is more likely on the cards for now.
iGaming has been William Hill’s saving grace during the lockdown, since sports betting is massively affected by popular tournaments being postponed. In July alone, revenue from online gambling in New Jersey crossed $510 million, compared to $138 million generated by sports betting.
The Deal with CG Technologies
Buying out CG Technologies granted William Hill immediate access to the former’s base of operations, furthering its footprint on the Las Vegas Strip. The acquisition includes Palms Casino Resort and Spa, Tropicana Las Vegas, Silverton Casino Resort, and The Cosmopolitan.
CG Sportsbook, however, continues to operate as an independent franchise, while the deal didn’t include non-functional properties like Hard Rock Hotel and Casino and M Resort. According to William Hill’s recent statement to the press, CG Technologies’ sportsbooks are now available at the company’s properties, including Silverton Las Vegas, The Cosmopolitan, and The Palazzo Resort.
New services include an expanded betting menu, self-service kiosks, and a range of reward club offers. The takeover massively benefits William Hill while setting their bank account back by $50 million. A small sum compared to the rewards.
The amount includes funds related to past litigations between the two firms. On the flip side, using CG Technologies’ established footprint, William Hill can now look at expansion opportunities without worrying about building their base from scratch.
Caesars and William Hill’s aren’t the first joint venture in the US online gaming industry. The merger between GVC Holdings and MGM Resorts International set the groundwork for future mergers. Their lovechild, Roar Digital, currently includes successful platforms like BetMGM, Borgata, and Party Casino in its portfolio.