William Hill Receives Offer from Caesars and Apollo For a Potential Takeover

Caesars Entertainment
William Hill Plc announced last Friday that it has received separate offers from Caesars Entertainment Inc. and Apollo Global Management Inc. for a potential takeover.

The U.K.-based sports betting company said that talks on the two different cash proposals are ongoing but added that it remains uncertain if there will be a formal offer presented. William Hill said in a statement that both Apollo and Caesars have until October 23rd to make a formal offer or walk away from a potential deal as per UK takeover rules.

Per William Hill:

“Following an initial written proposal from Apollo on 27 August 2020, William Hill received a further proposal from Apollo and proposals from Caesars.”

Shares Surge

Shares of William Hill surged as much as 41% in London trading on Friday, which was an intraday record. The UK bookmaker now has a market value of about $4B. Rival betting companies also saw their stock rise last Friday with GVC Holdings Plc putting on an extra 15.5% and Flutter Entertainment Plc gaining 6.7%. Similarly, shares for Apollo was up by almost 3% while Caesars jumped by as much as 8.4%.

Apollo has a history of making investments in the gambling sector. In 2008, it joined forces with TPG for the buyout of Harrah’s Entertainment Inc. which was subsequently renamed as Caesars. Last year, the buyout firm also acquired a share in Italy’s Gamenet Group SpA.

Partnership With Caesars

William Hill already has a partnership with Caesars. Earlier this month, it was announced that Caesars had forged a deal with ESPN to link William Hill’s sports betting app in states where sports betting is already legalized in the United States. William Hill has also been appointed as the official odds provider of ESPN and as such, it will appear in all of ESPN’s platforms.

Last month, ESPN opened a high-tech studio at the Linq Hotel + Experience. The 6,000 square foot facility has been tabbed as the epicenter of ESPN’s sports-betting themed content. ESPN’s “Daily Wager” program was also transferred to the new studio which will broadcast Las Vegas-exclusive sports betting and entertainment news.

One of the World’s Largest Sportsbooks

William Hill is one of the largest sportsbooks in the world with offices in 10 different countries. Since Chief Executive Officer Ulrik Bengtsson took over last year, the company has been focused on building its online business.

Since the United States Supreme Court repealed the Professional and Amateur Sports Protection Act in 2018, William Hill has been building up its presence in the U.S. The American market has become more attractive for the company after UK gambling regulators slapped a stake limit on betting machines. This regulation led to the closure of 700 shops in Great Britain.

GVC Holdings is Focused on Responsible Gambling

One of the biggest and most profitable gambling companies in Europe is working hard to establish a name for itself in the US market. GVC Holdings, which owns companies such as Ladbrokes, has already begun operating in several US states. Recently, this company revealed that it’s focusing hard on promoting responsible gambling.

GVC Holdings Logo

State governments want to ensure that their residents don’t fall into gambling addiction. Today, we’re going to look at GVC Holdings’ new push into the US and talk about how this company plans to promote responsible gambling. Let’s get into it!

US Sports Betting Market Open Up to Foreign Companies

There’s never been a better time for both sports bettors and sports betting companies looking to enter the US market. In May of 2018, the Supreme Court officially struck down PASPA. This now allows every state in the country to set their own laws on the sports gambling industry.

New Jersey was the first US state to legalize sports betting after PASPA was struck down. In less than two years, this state has grown to become the most lucrative sports betting market in the country. New Jersey is now earning even more than Nevada from its sports gambling operations.

Unsurprisingly, a huge number of European-based sports betting companies are now working to break into the US market, Several already have. William Hill, for example, has restructured its entire company to better suit the US sports gambling industry.

GVC Holdings is also currently working its way into the United States. This company partnered with MGM Resorts International in 2017 to launch a new online sports betting app. This week, GVC announced that it was launching a new foundation to promote responsible gambling.

GVC Holdings Launches Responsible Gaming Foundation

As we’ve just mentioned, GVC Holdings is now active in the United States. This week, the company announced a new plan to curb problem gambling. This company has officially launched a new foundation that’s focused on responsible gambling, corporate compliance, and sports integrity.

The new foundation will team up with Harvard Medical School, the National Council on Problem Gambling (NCPG), and National Center for Responsible Gambling. The goal is to develop several US educational programs that warn gamblers about the dangers of addiction.

Martin Lycka, director of regulatory affairs at GVC Holdings, recently commented on this new company foundation to the media this week.

“This new US Foundation extends our Global Foundation,” he said. “The range of new initiatives and quality of partnerships express our global commitment to Corporate Social Responsibility (CSR).”

In partnership with the NCPG, GVC Holdings will collaborate on the development of responsible gambling educational programs for active military service personnel and veterans in 2020.

It’s great news to hear this company working to fight against the spread of gambling addiction in the United States.

GVC’s US Operations Are Already a Massive Success

Everyone knows that the US is now the most lucrative new gambling market in the world. It was expected that any companies entering this market would profit massively. Fortunately for GVC Holdings, it’s US betting app is already proving to be a huge success.

This company officially raised its annual core earnings forecast for the second straight time this year. GVC’s app, called BetMGM, is helping to generate the company’s major revenue earnings. Now, the company expects full-year core earnings of about $818.07 million.

Russ Mould, investment director of AJ Bell, confirms that the company is benefiting from its expansion into the US.

“The company’s fortunes seemed to have turned around since reporting half year results in August when it said the full year should be better than expected,” Mould said. “True to its word, its latest trading update confirms that business is going swimmingly.”

It’s likely that GVC Holdings will continue breaking into new states over the next few years. Perhaps in time, this company will even begin offering online casino gambling options in the US.

Stay tuned for more updates over the next few months!