- Caesars share prices rise after William Hill purchase
- What does the William Hill purchase mean for US bettors?
Caesars Entertainment will complete its purchase of one of Europe’s oldest betting brands this week after a court approved of the $4bn takeover deal of William Hill.
Caesars announced last September that a deal for William Hill – which began operations in 1934 – had been agreed, but the transaction has had to wait until now to get through the UK courts.
The ruling issued Tuesday, April 20 grants Caesars access to the William Hill business on both sides of the Atlantic. That includes full control of its US operations arm, which has been running since 2012 in partnership with Caesars and features 150 locations across 10 states.
And the Vegas giant isn’t planning on waiting long before digging into its new purchase. It is understood that Caesars plans to keep the US arm of William Hill but sell off its UK and European operations.
Caesars Share Price Rise
This is likely to lead to a scramble in Europe by betting companies keen to snap up a sizable chunk of the market. Gambling companies 888 and Betfred are tipped to be potential buyers of William Hill’s chain of betting shops.
William Hill is the fourth-most popular betting brand in the UK with over 1500 outlets in the UK alone. It took a big financial hit during the coronavirus pandemic, seeing 2020 profits slump 91 percent to just $12.7m, but is expecting to bounce back in coming years.
What’s more, the company was one of the first to offer mobile sports betting and casino in the US – and it was that presence that convinced Caesars to make their move.
The approval saw Caesars’ share price rise 0.8 percent Tuesday to over $89 a share. To put this into context, the casino’s shares have gained 20 percent in value during 2021 alone.
What This Means for US Bettors
From the outside looking in there is unlikely to be much change for US sportsbook bettors seeking to use William Hill products. Caesars is expected to keep the same strong branding that has served William Hill well for decades, and invest further in its US operations.
The deal itself has been expected for some time. When William Hill first ventured into the States nine years ago, they did so in partnership with Caesars Entertainment. Marrying the UK firm’s industry knowledge with the US casino company’s financial muscle means Caesars gets an even greater share of the online sports betting industry.