One of America’s most well-known casino gambling brands, Caesar’s Entertainment, announced that it would be acquiring William Hill, a leading UK gambling company, late last month. A private equity firm called Apollo Global Management Inc. had also shown interest in acquiring William Hill Plc. It remains to be seen whether the equity firm will be bidding for some of the UK-Based company’s assets once Caesars begins to sell them off. Caesar’s executives have indicated that they will not be making any moves to expand within any of William Hill’s current European markets and intend to use the acquired assets to solely enhance the American gambling experience.
Particulars of the Acquisition
The agreement between the Caesars Entertainment and William Hill PLc’s executive boards has outlined certain particulars dealing with the acquisition. Caesar’s Entertainment group will be giving William Hill owners a combination of $3,7 billion. According to the deal, William Hill shareholders will receive 272 pence for each share. Caesar’s will receive the entire company, and relevant assets, in return. The deal has been described as a historic move that will unite American’s biggest gambling brand with the UK’s leading betting and gambling company. Analysts have stated that this acquisition is the logical next step as both companies have been moving closer to each other in recent years, with William Hill and Caesar’s operating as a joint venue. Caesars already owns 20% of Will Hill’s US business in exchange for William Hill being allowed to offer sports betting at 50 of the American casinos that Caesars operates.
The acquisition is subject to anti-trust law compliance, regulatory approvals, and the support of William Hill shareholders. As a result of the many pending aspects, the deal is expected to be finalized and officially closed in the second half of next year.
About William Hill
William Hill was founded in 1934 and has since become one of the leading gambling companies in Europe, and more specifically the UK. To appeal to a more international clientele, William Hill acquired reputable international casino brands such as Mr.Green, which has exceptional success within the North American casino market. The strategic partnerships and acquisitions that were actioned by William Hill’s executive board have resulted in the brand extending its reach into a range of different countries. For example Mr.Green Casino Canada is one of the leading brands among a new generation of online casino players that values trendy themes and outstanding graphics targeted to the taste and demand of Canadian players.
However, business took a downward turn in the UK in 2008 due to the British Government setting strict and confining limitations on the amount that Wiliam Hill, and other sportsbook providers, could charge customers who used their betting terminals. The company then doubled its efforts and moved into the American market that was on the brink of a sports betting boom. The US legislature that made the sports betting market illegally in the country was done away with, giving rise to individual state legislators, and parties, motioning for a legalized industry, and achieving it over the next two years. There are currently 18 states in America that have legalized sports betting, with many more expected to join their ranks.
How The Acquisition Benefits Caesars
The acquisition deal, and the fruits thereof, allow Caesars Entertainment to combine their premium land-based casino experience with an exceptional sports betting experience as well as a seamless online casino gaming offering. Caesars Entertainment has grown its brand to its current status through its land-based locations but is looking to dominate the sports betting industry with the use of assets acquired from the William Hill deal.
Caesars intends to make some of their money, and hopefully a little extra, from the acquisition back by liquidating and selling off the William Hill assets that are based in the UK and other regions of Europe. It is unclear whether Caesars Entertainment is planning to sell off assets, such as Mr. Green, that service the Canadian market.