Gambling operator William Hill has signed a partnership deal with United States-based casino giant Eldorado making it the latest British bookmaker to strike a major deal in the US in a tip to tap into the recently liberalized and burgeoning sports betting market. Both companies have agreed to a 25-year partnership and with Eldorado Resorts reportedly planning to extend its reach to 13 – double the previous number – other states where sports betting has been legalized or sports betting bills have been tabled.
As per the terms of the partnership agreement, William Hill will be Eldorado’s exclusive partner in the provision of both land-based and online sports betting services – this will begin with Eldorado’s 21 casino properties that are spread out across 11 states and cater to 23 million customers.
Now that the partnership has finally been officiated, William Hill is set to open in five properties across three states in the next few weeks. These will be followed by additional openings in Eldorado’s casinos as well as digital gaming services that should be ready within the next few months – unfortunately, this will be subject to legislation in each state.
“This partnership provides extensive cross-sell and profit growth opportunities to both parties… We share common goals and we are aligned in how we see sportsbook going forward and the opportunity. We are very pleased with the announcement today and it is a significant step in the right direction,” William Hill chief executive Philip Bowcock said. “Together, we are positioned to capture the evolving US opportunity – starting with land-based sports betting and extending to digital sports betting and, in some states, online gaming.”
“Having worked with the company since 2012, we believe William Hill represents the gold standard in global sports betting and we are confident that our expanded partnership will be successful. We look forward to bringing the excitement of sports betting to customers across our growing platform of leading casino resorts, creating value for all shareholders,” Gary Carano, chairman, and chief executive of Eldorado also commented.
William Hill’s Shares Go Up 5 Percent
After the announcement that it has partnered with Eldorado Resorts, William Hill’s shares rose by as much as 5 percent. First off, this marks a significant rebound for the UK bookmaker following its recent misfortunes that including falling to a near-5 year low. This was caused by a report that clampdown on fixed-odds betting terminals in the UK had pushed it into a “pre-tax loss for the six months to June.”
Things have changed for the better though:
“William Hill’s US business appears to be going well. Amounts wagered in its existing US operations grew by 25% in first half of 2018 and the company insists it is able to move quickly to capitalize on new opportunities,” said Russ Mould, investment director at AJ Bell.