William Hill agree US expansion

business expansion concept

Betting company William Hill have struck a deal with a major US gambling group as they seek to expand their influence in the new US sports betting market.

The new partnership is with Nasdaq-listed company Eldorado Resorts, which is valued at around $3.7 billion and can boast a customer base of 23 million. Under the terms of the agreement, Eldorado will own a fifth of William Hill’s US-based operations, and in turn will provide sports betting outlets for the UK bookmaker in all of its casinos. Currently, Eldorado operates casino resorts in 13 of the 50 US states.

Sports betting was effectively legalized in the United States by a decision of the Supreme Court in May, and since then, many UK and Irish gambling companies have been attempting to take advantage of the new market. Paddy Power Betfair have branched out by purchasing FanDuel, a fantasy sports league company, and Ladbrokes have also made the move across the Atlantic through a deal between parent company GVC and US casino giant MGM.

Gold standard

The opening up of the US market couldn’t have come at a better time for William Hill, who recently announced a loss before tax of £819.6 million in the first half of 2018. That compares to a £93.1 million profit last year, and the decline is largely down to the decision of the UK government to cut the stake of Fixed Odds Betting Terminals to £2. 

The deal with Eldorado is also expected to include a joint online betting venture, and will give William Hill significant opportunities for expansion in the growing US sports betting market. For Eldorado, chief executive Gary Carona, said that the deal would enable them to bring sports betting to their existing customer base, and that William Hill were the ideal partner:

Having worked with the company since 2012, we believe William Hill represents the gold standard in global sports betting and we’re confident that our expanded partnership will be successful.”

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