Caesars Entertainment (CZR) plans to sell William Hill’s non-American properties since taking over the company a few months ago.
The Las Vegas casino mogul planned to span off the UK shops since it could obtain one of Britain’s oldest gambling brands. The deal was completed last month for $3.7 billion, or £2.7 billion. William Hill has nearly 1,400 retail betting shops in the UK high street, which are now for sale.
According to the Telegraph, the sale could generate around £1.5 billion. This auction will include many of William Hill’s digital businesses and brands in the United Kingdom and Europe.
Apollo Global Management (APO), an asset buyout firm from Wall Street, has entered the bidding war on behalf of Shaked Ventures. This Israeli casino giant owns 888 Holdings, a company listed on the FTSE 250 (FTMC) (888.L).
Apollo Capital Management is a private equity firm that was successful in acquiring supermarket chain ASDA last year. They are said to have attempted to purchase the entire bundle last year.
William Hill, established in 1934, has capitalized on its nearly century-old heritage. It was also one of the first UK players in the United States, allowing it to participate in the massive gold rush that has erupted since the decade-long bans on gambling were lifted in 2018.
Accompanied by a flurry of interest in Britain’s betting scene from American gambling firms, the gaming industry in the United States is looking to leverage the expertise of more experienced British and other European operators.
Thanks to the COVID 19 pandemic, there has been an increase in betting and internet gaming in recent months. In March this year, Gamesys (GYS.L) agreed to a potential acquisition by Bally’s Corporation (BALY). The deal is assumed to be worth more than £2 billion ($2.78 billion).
Entain (ENT.L), an FTSE 100 company and owner of Ladbrokes, blocked a takeover attempt by US Casino powerhouse MGM earlier this year. At the end of 2020, Entain’s earnings were stable at £3.5 billion ($4.87 billion) with a £175 million ($243 million) profit, which reflected an increase of 28% increase from online gaming revenue.
Flutter Entertainment (FLTR.L), the company that owns PokerStars, Skybet, Fanduel, and Paddy Power, has posted record-breaking sales in the United States for the first three months of 2021. The FTSE 100 casino behemoths saw a whopping 32% increase in sales in the first quarter, totaling £1.5 billion ($2 billion). A year-on-year increase of 42%. Internet gambling revenues in the UK and Ireland rose by 35% over the period.