Nevada OKs Caesars’ ownership of William Hill; CEO says it will sell bookmaker’s international business

March 19, 2021 12:01 PM
  • Howard Stutz, CDC Gaming Reports
March 19, 2021 12:01 PM
  • Howard Stutz, CDC Gaming Reports

Caesars Entertainment’s $3.7 billion acquisition of British sports betting giant William Hill is a little different from the casino operator’s previous acquisitions.

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In a sense, CEO Tom Reeg told the Nevada Gaming Commission Thursday, the company is buying the remaining 80% of a business in which it already owns 20%. Caesars acquired the stake back in 2018 when the casino operator was known as Eldorado Resorts.

Reeg told the Gaming Commission that Caesars only wants to own the U.S. operations for William Hill and plans to sell the international portion of the company soon after the deal closes next month.

“We’re a domestic company. Our intention is to sell the international assets,” Reeg said.

The Gaming Commission approved the deal, joining regulators in other states, stockholders of William Hill, and U.S. federal antitrust authorities.

Caesars attorney A.G. Burnett said the acquisition does not trigger any Nevada antitrust regulations because the company is “buying the remaining 80% of what it owns.”

Gaming Commission Member Steven Cohen suggested, however, another acquisition, “could trigger” monopoly concerns. He said William Hill currently takes in 46.1% of all sports wagers in Nevada and has 64.2% of sports betting locations in the state.

Las Vegas-based William Hill US has more than 170 retail locations across 13 states and has a 29% market share of the U.S sports betting business. Most of William Hill’s sportsbooks are not associated with Caesars.

In addition to the Caesars properties, William Hill’s Strip presence includes Circus Circus and Sahara. Through the acquisition last summer of rival CG Technologies William Hill took over sports betting at the Venetian, Palazzo, Tropicana, and Cosmopolitan. William Hill US also operates sports in downtown Las Vegas at the Strat and Plaza.

The company employs more than 1,100 people. Joe Asher is the CEO of William Hill US.

William Hill US operates 12 branded sportsbooks at Caesars’ properties in Nevada, Iowa, and New Jersey. William Hill will rebrand additional Caesars sports betting facilities and launch the Caesars Sports Book by William Hill mobile app.

On Thursday, Caesars and William Hill launched sports betting in North Carolina at two properties the casino operator manages of the Eastern Band of Cherokee Indians – Harrah’s Cherokee and Harrah’s Cherokee Valley River. With the opening, North Carolina became the 22nd state to have legal sports betting.

Reeg told the commission Eldorado was seeking a national sports betting presence in 2018, which is why the Reno-based company contracted with William Hill US to operate its sportsbooks in Nevada and other markets and acquired 20% of the business.

At the time, he said the company wasn’t in a position to acquire all of William Hill US, and owning Caesars “wasn’t even an idea. “However, the $17.3 billion acquisition last summer, “put us in a different position. Reeg said the idea of tying William Hill US to the Caesars Rewards customer database, “behooved us to take control of our own destiny.

Caesars Chief Financial Officer Bret Yunker told the Gaming Commission selling the international portion of William Hill would bring cash back into the company.

In January, Caesars acquired daily fantasy sports platform SuperDraft to add to the company’s interactive brands, including the World Series of Poker, Caesars Online Casino, and William Hill.

Caesars took “an initial minority equity position” in privately SuperDraft, which is based in New Hampshire and offers daily fantasy sports contests covering seven professional sports in more than 35 states.

A price wasn’t revealed, but Caesars has an option to increase its stake over time up to 100% at pre-determined levels.

Shares of Caesars closed at $90.60 Thursday on the Nasdaq, down $5.44, or 5.66%.

Howard Stutz is the executive editor of CDC Gaming Reports. He can be reached at hstutz@cdcgaming.com. Follow @howardstutz on Twitter.