We reported on a number of occasions on the situation in the US and the initiatives put in place in various US states. We reported earlier this month that US online gambling is on the rise and that’s hardly surprising considering that there are no more states where at least one form of online gambling is legal and there are quite a few where the process of legalisation of online gambling has already began and is underway.
For instance, towards the end of last week, we brought you news that Michigan is closer to launching iGaming and betting platforms. Earlier this month we also reported on the changes of the legal situation of sports betting in Virginia, namely sports betting has also been approved in this state.
There were also a few examples of UK companies entering the US market, in fact with the newly introduced restrictions in the UK, the American market was seen as a very logical expansion area for British companies. Some of them have partnered with US companies and organisations to ensure better operations. This time it is an American company that it’s looking to enter the UK market. And it will be quite an entry.
William Hill’s value is estimated at £3 billion
Namely, it has just been announced that Las Vegas-based Caesars Entertainment, one of the largest players in the US is in takeover discussions with William Hill and it has been stated that the company’s price is valued at almost £3 billion, or to be precise £2.9 billion. The William Hill’s board, as it has been revealed by representatives of Caesars Entertainment is willing to offer its capital at a 272p price per share.
However, Caesars isn’t the only US-based company that has approached William Hill. Apollo, a private equity company from the US has also approached William Hill with the idea to take over the company. If the British bookmaker chooses Apollo, that will surely jeopardise the venture between Caesars and William Hill.
Caesars and William Hill are already connected, as the American company owns 20% of the shares of William Hill’s operations in the states and the British company has an exclusive right to offer sports betting services on the US market under Caesars.
It will put Caesars in a unique position
Caesars CEO has stated that the company is looking to unite its brick and mortar casinos, its sports betting operation and the online gaming which will give them a unique position and undoubtedly make them the strongest gambling company in the country. William Hill currently owns about 170 retail locations in 13 US states.
The deal and the opportunity to concentrate all operations under one umbrella will allow Caesars to serve its customers better in an ever growing and expanding market.
The news that the company has been approached for a takeover saw its price share increase by 42% last Friday. It was reported that the price share of William Hill was estimated at 312p. Caesars through their representatives have stated that their offer is about 58% higher than the estimated price share of William Hill.
As we stated, there are two companies that are interested and have launched takeover bids, but it is very likely that Caesars will be the winners here, as they already own a share of William Hill’s US operations.