Strong growth for William Hill in the United States will continue to bolster the company’s portfolio with share prices possibly doubling their value, according to investment bank Jefferies.
William Hill’s Results Will Continue to Improve in the U.S.
According to investment bank Jefferies analysts, William Hill’s shares will continue to grow in light of the now lifted sports betting ban known as PASPA, which was struck down back in May 2018 by the Supreme Court of the United States (SCOTUS), a move spearheaded by New Jersey.
William Hills has been quickly expanding around the U.S. Out of 20 states where sports betting is legal, and 13 in which it has officially launched, William Hill already runs shops in 10, including minnows such as Rhode Island.
With the total handle in 2019 standing at $13 billion across all legal states in America, Jefferies experts now believe that William Hill can generate $5 billion profit opportunity in light of the quickly expanding industry.
Another area which William Hill can look forward to capitalize from is the expansion of the online casino segment, which is mostly limited to New Jersey and Pennsylvania at the present moment. Yet, the sportsbook and gaming companies is well-poised to expand into the iGaming segment in the U.S. as well.
Price shares have also rallied 3.83% today to the most recent deal with Viacom CBS Inc.’s CBS Sports.
A Deal That Will Boost Exposure and Operations
The CBS partnership is another important milestone for the company which has been operating in the U.S. even before PASPA was defeated. The company’s office was limited to Nevada where William Hill offered land-based sports betting product.
However, in light of mounting regulatory challenges at home, the sports betting company has made a marked shift towards the United States which, the American Gaming Association (AGA), expects to be the second-largest market by 2030.
To put things in perspective, in 2019, Gambling Compliance, a research firm, estimated that the market would be worth $8.1 billion in terms of revenue by 2024. As of 2019, the revenue that was hit nationwide reached $1.2 billion, still nearly 6.7 times lower than what GC forecasts four years from now.
William Hill’s roots in Nevada run deep with the company running successful partnership with Eldorado Resorts, one of the largest operators nationwide and within the Silver State as well.
The move is not entirely unprecedented on the U.S. market as GVC Holdings and MGM Resorts International have announced a deal with Yahoo Sports and Flutter Entertainment is looking to seal a deal allowing for closer ties with FOX Sports, specifically through The Stars Group merger.
Bringing sports betting and media operations under the same roof is not surprising. For example, ESPN runs a show called The Daily Wager and 80% of the company is owned % by Disney, which in turn, in turn, opposes sports gambling on principle.
Image credit: William Hill