William Hill Rebrand? Caesars Agrees To Buy Company For $3.7 Billion Pricetag
It’s official: Caesars has agreed to buy William Hill for $3.7 billion.
One of Illinois‘ five virtual casinos is William Hill. Through the Grand Victoria Casino in Elgin, a Caesars residence, it gained access to the market.
Here’s what we know about the deal and how it will change sports betting in Illinois.
All in on playing games online
One of the biggest entertainment companies in the nation, Caesars, desired to grow its product line.
It looks to have done so with this deal.
“The opportunity to combine our land-based casinos, sports betting and online gaming in the US is a truly exciting prospect,” said Caesars Entertainment CEO Tom Reeg in a press release.
In the next quarter of 2021, the agreement may be finalized. Prior to the acquisition, Caesars already owned a 20 % stake in William Hill, which is why Grand Victoria is associated with William Hills & rsquo.
Caesars has been actively looking for internet alliances, and the agreement may broaden its reach there as well. While William Hill is partnered with CBS Sports, it has a multi-year marriage with ESPN.
Caesars anticipates that its new sports and online gaming division will bring in between$ 600 million and$ 700 million in net revenue in the US in 2021.
William Hill’s chair, Roger Devlin, stated:
& ldquo, according to the William Hill board, this is the best choice for shareholders at a reasonable price. It acknowledges the major advancements made by the William Hill party over the past 18 months, as well as the risk and sizeable funding needed to take full advantage of the US opportunity given the country’s fierce competition and the possibility of regulatory disruption in Europe, the UK, and other countries. & rdquo,
Additionally, given Caesars’ strong brand recognition, it’s entirely possible that William Hill virtual casinos will be rebranded to the latter, even though we can’t say for sure.
William Hill is located in Illinois, but compared to other casinos, there isn’t much( if any ) marketing for it.
Maybe it held off on making any significant promotion efforts until this deal was finalized.
As of last week, William Hill was probably the least intriguing of Illinois’ five online sportsbooks, but there & rsquo is undoubtedly a reason for intrigue now.
Caesars will buy off non-US companies
According to the press release, the entertainment business intended to sell off William Hill & rsquo’s non-US assets.
& ldquo, It reads,” In terms of our UK and International organizations, we believe they have a solid future away, and we will work with Caesars to find suitable partners to further the long-term growth prospects of these companies.”
In the first half of 2020, those assets made up 93 % of the group’s revenues.
That includes the UK retail house, the global division of the company, and William Hill UK online. Together, they generated around$ 575 million in revenue in 2019.
Additional advantages for Caesars
Caesars have had a preoccupied time, with the acquisition of William Hill serving as the most recent illustration.
It finished its unification with Eldorado in July. Grand Victoria Casino is now owned by Caesars because Eldorado bought it in 2018.
Caesars, however owns Harrah’s Joliet and Harrah’s Metropolis in Illinois. Neither casino has a retail sportsbook at the moment, but if they choose to pursue licensing, William Hill is now fully on board.
In addition, Caesars has a renowned commitment program with about 60 million people.
Another appealing aspect of the offer is having a unified pocket and consumer experience across online sportsbook and online casino.
Caesars & rsquo’s share price increased by 3 % in pre-market trading after the news.