Caesars Entertainment has made a big statement in the US casino and sports betting industry. They have done this by completing the acquisition of William Hill Plc for money valued at £2.9 billion (equivalent to about $4 billion) (Barber, 2021). This is a big statement because Caesars Entertainment has acquired one of the world’s leading betting and gambling companies in the US. This also gives them the ability to maximize the opportunity present within sports betting and online gaming in the United States. You have to be excited if you are an online gamer!
Reason for the Acquisition
Caesars Entertainment came out with a statement claiming that the reason for the acquisition is to bind its casinos ever closer to the fast-growing legal sports betting in the United States (Parry, 2020). They also indicated that they were interested in the company’s U.S. assets, and admitted that it would sell off William Hill’s assets in the United Kingdom and other countries. They announced that they would purchase all the shares of William Hill totalling about 1.08 billion and the shares would be sold at £2.72 apiece (Fletcher, 2021).
The CEO’s Statement
The statement was announced by the CEO of Caesars Entertainment named Tom Regg. He stated “The opportunity to combine our land-based casinos, sports betting, and online gaming in the US is truly an exciting prospect. We look forward to announcing future sports partnerships that will drive growth on a long-term basis”. He continued by saying “William Hill’s sports betting expertise will complement Caesars’ current offering, enabling the combined group to better serve our customers in the fast-growing US sports betting and online market” (Parry, 2020).
The Chairman’s Statement
The chairman of William Hill, Roger Devlin, also came out with a statement to confirm the deal. He said in a statement “The William Hill board believes this is the best option for William Hill at an attractive price for the shareholders. The board recognizes the significant progress the William Hill Group has made over the last 18 months, and also the risks and significant investment required to maximize the US opportunity given the tough competition in the US betting industry and the potential for regulatory disruption in the UK and Europe”. (Parry, 2020) (Barber, 2021).
Regulations
Both Caesars Entertainment Inc. and William Hill Plc currently operate sports betting in 18 jurisdictions across the United States. Of these 18 states, 13 offer mobile sports betting. The new company is expected to be operational across 20 jurisdictions in the US by the end of 2021 (CISION PR Newswire, 2021).
Impact of this transactional deal on the casino and online betting industry
This deal will not affect how bettors will be able to place bets or what type of bet is offered. But, the deal will lead to the expansion of the brand which allows more online betting sites to emerge in States where online wagering is legalized by the Government.
This transactional deal will provide a positive impact on the US betting and gaming industry. This is because Caesars Entertainment Inc. will further expand the reach of Caesars Rewards. They will do this by providing William Hill members access to Caesars’s industry-leading loyalty program. This will include the ability to earn tier status that will be used at the Company’s online and land-based properties.
This transactional deal will also enable the company to further enhance its services to customers by providing a single-wallet offering of sports betting and online gaming products across the enterprise in the future (CISION PR Newswire, 2021).
About Caesars Entertainment Inc.
Caesars Entertainment Inc. (also known as NASDAQ: CZR or ‘Caesars’ of the company) is regarded as one of the largest casino entertainment companies present in the United States. It is also one of the world’s most diversified gaming entertainment providers. Its inception was in the year 1937 in the city of Reno (Nevada). Over the years, Caesars Entertainment has grown through the development of new expansions, resorts, and acquisitions.
Caesars Entertainment’s resorts operate primarily under different trademarked brand names. Some of them are Caesars®, Horseshoe®, Harrah®, and Eldorado®. They also offer diversified amenities each having unique destinations. These amenities are established with a focus to build loyalty and value with their guests through a unique combination of operational excellence, impeccable service, and technology leadership. Caesar Entertainment Inc. always shows commitment to its suppliers, employees, communities, and the environment through a framework. This framework is called the People Planet Play.
Caesars Entertainment Acquires William Hill Plc FAQ
Who were the law firms that represented both companies in the transactional deal?
Caesars Entertainment was represented by Deutsche Bank, Linklaters LLP, and Latham & Watkins; while William Hill was represented by Barclays Bank PLC, Slaughter & May, PJT Partners, and Citigroup Global Markets Limited (CISION PR Newswire, 2021).
Was there any other firm also interested in acquiring William Hill Plc?
Answer: Yes, a private equity firm called Apollo Global Management Inc. showed interest in acquiring William Hill. But it remains to be seen if they would acquire part of their European asset (Parry, 2020).
References
- Parry Wayne (2020). Caesars entertainment buys bookmaker William Hill for $3.7 billion. AP News. 30 September 2020. https://apnews.com/article/atlantic-city-archive-united-kingdom-sports-betting-c0eea070009b7628c5d142ccae563770
- Fletcher Robert (2021). Caesars completes the £2.9 billion acquisition of William Hill. iGaming Business iGB. 22nd April 2021. https://igamingbusiness.com/caesars-completes-2-9bn-acquisition-of-william-hill/
- CISION PR Newswire (2021). Caesars Entertainment Announces Completion of William Hill PLC Acquisition. Caesars Entertainment. 22nd April 2021. https://www.prnewswire.com/news-releases/caesars-entertainment-announces-completion-of-william-hill-plc-acquisition-301274863.html
- Barber Bill (2021). Court clears William Hill’s £2.9 billion takeovers by US casino giant Caesars. Racing Post. 20th April 2021. https://www.racingpost.com/news/court-clears-william-hills-29-billion-takeover-by-us-casino-giant-caesars/485493
