William Hill Partners with Eldorado Resorts
The company has agreed to sell one-fifth of the stake in its US-based business venture to Eldorado Resorts, a gaming company based in Reno, Nevada. This move will also enable William Hill to become Eldorado Resorts’ exclusive sports betting operator.
Expanding Its Footprint in the US
Under the provisions of the new deal, William Hill US will offer its services as part of Eldorado Resorts’ facilities across the country. At this moment, the gaming operator has a total of 21 venues, located in 11 states.
This number is set to increase to 26 casinos in 13 states after the acquisition of Tropicana Entertainment goes through in the last quarter of 2018.
This is a perfect time for a partnership like this since the US states are rushing to legalise sports betting following the US Supreme Court’s decision to repeal the controversial PASPA Act back in May, putting an end to a 25-year long federal ban on sports betting.
Four states have made wagering on sports legal since then, and nearly a dozen more are likely to the same in the near future. New Jersey, Delaware, Rhode Island were the first to do so, while West Virginia is the latest one to approve sports betting
Commenting on this important deal, Philip Bowcock, Chief Executive Officer at William Hill said partnering with Eldorado would give the bookmaker access to one of the largest and most attractive casino footprints with 23 million customers across multiple states.
He stated the new partnership would provide extensive cross-sell and profit growth opportunities to both parties, and added the two sides were positioned to capture the evolving US opportunity – with both land-based and digital sports betting, as well as online gaming in some of the states.
Ambitious Plans for the Future
Since the arrival in the United States, six years ago, William Hill has been doing business in Nevada, as the Silver State was the only one exempted from the 1992 federal ban on sports wagering. According to the latest information, the bookmaker holds nearly one-third of the state’s betting market.
Apart from Nevada, William Hill US also operates two sportsbooks in New Jersey and has recently signed a deal to start offering sports betting services to 13 casinos in Mississippi, while its operations in West Virginia kicked-off on August 30.
As we’ve already stated, thanks to this deal, William Hill US will become the exclusive sports betting partner for Eldorado Resorts, operating sports betting facilities located on the operator’s properties across the US. The deal won’t be limited to land-based operations but will include online as well.
In addition to getting a 20% stake in William Hill US, Eldorado Resorts will receive $50 million of stock, subject to 3-5 year lock up. The initial term of this agreement is set at 25 years.
The British company was also in talks with Penn National Gaming, but the negotiations were concluded at an early stage, without any agreement whatsoever.
William Hill wants to maximise its presence in the United States, especially since the business in its home market is not doing well.