Caesars Entertainment has been in the news for a major acquisition that resulted in the creation of the largest domestic gaming company in terms of the number of properties, and it looks like the company has no plans to slow down.
The company, which has a strong presence in the US, can also be found in the UK and Canada.
According to the latest reports, Caesars Entertainment is in talks with William Hill to combine its sports wagering and online casinos operations with the US giant. Some believe that this merger will give a major boost to both companies.
With Caesars operations in Ontario, we could see the tow companies pair together again to bring their sports betting app to Canada in a similar deal. We’ll have to keep an eye on that one for the future.
What’s Really Happening?
Wolfe Research analyst and industry expert Jared Shojaian was the first to break the news.
According to him, the two parties are interested in creating a joint venture with equal ownership.
It’s believed that each company will get to own 40% of the new venture and the remaining 20% will be available for the public to invest in.
What The Officials Have to Say
Joe Asher, William Hill CEO, confirmed the rumors while talking to Bloomberg:
“There’s a lot of opportunity in there, and we think that we’ve got some really powerful assets in this space, so obviously it’s an ongoing subject of discussion,” he said while confirming the news.”
The two parties entered into an agreement two years ago when the company was called Eldorado Resorts.
Under the current agreement, The British bookmaker gets to manage the company’s sportsbooks and receives 40 percent of the economies while also enjoying a 20 percent share in William Hill’s US unit.
How The Companies Are Getting Bigger
There seem to be a lot of new mergers and acquisitions happening in the industry especially surrounding the two names involved in this story.
Eldorado is about to finalize a $17.3 billion takeover of Caesars Entertainment, a unique deal because the buyer is going to take the name of the target name.
Similarly, last week was big for William Hill when it completed the acquisition of CG Technology’s Nevada operations. This is a major move as it will allow the giant to add books at several popular LA venues including the Cosmopolitan, Tropicana, and Palms.
William Hill now has a bigger footprint in LA thanks to the acquisition of Caesars. Thanks to this, the company’s US portfolio is now pretty big standing at 170 books across 13 states.
The company has a strong presence in some states where sports wagering is legal and live.
Tom Reeg, Caesars CEO, spoke last month about growth potential. He suggested that the company is working on revealing a unique and permanent solution for its sports wagering and iGaming businesses.
The segment is expected to drive up to $700 million in revenue by next year. The number is big and proves that the industry is growing in the country.
Merger talks are fast gaining momentum. There’s a lot in common between William Hill’s American operations and Caesars’ unit – they both have potential.
Coming together can be a great opportunity for the two businesses to reach a wider audience and build a solid reputation. It’s believed that this merger can be worth $7 billion.