Game Changer? Caesars To Merge Online Casinos With William Hill Sportsbook
Sportsbook giant William Hill and casino operator Caesars Holdings have announced plans to merge their U.S.-based online gambling businesses. The joint venture would bring together two betting organizations into a single entity, estimated to potentially generate $700 million in annual revenue.
The deal, which could value the combined operations at around $7 billion, would bring together William Hill, who just completed its acquisition of Cantor Fitzgerald’s sports betting unit CG Technology, and Caesars, who already owns 20% of the U.K.-based operator’s sportsbook in the U.S.
William Hill CEO Joe Asher commented on the deal, saying, “We’ve been riding on their coattails as they’ve been growing. Clearly, we bet on the right horse.”
Caesars CEO Tom Reeg also said in July a merger would result in “gathering all our mobile assets, both sports and online. That would be ideal.”
The merger could put the combined entity in competitive contention with industry leader DraftKings, which is currently valued at $13.5 billion.
Following Eldorado’s acquisition of Caesars, William Hill will be responsible for 170 locations in 13 states. Analysts believe it’s possible Caesars could acquire William Hill, but the betting money is on a publicly traded joint venture.
The joint venture would bring together two of the largest online gambling businesses in the U.S. and could give them the competitive edge they need to take on DraftKings. It remains to be seen what the outcome of the merger will be, but it will certainly be interesting to watch as the two companies attempt to become the top online gambling business in the country.