Over the past few years, Caesars has grown to become one of the most powerful gambling companies in the world. Rumors of this company acquiring William Hill have been circulating for weeks. New reports are now surfacing that the Caesars-William Hill takeover has been officially confirmed.
This is another huge move for Caesars. Today, we’re going to look at the specific details of this massive new acquisition. We’ll also talk about what it means for the US gambling industry moving forward.
Let’s get into it!
Caesars is Now the Biggest US Casino Companies
There’s a good chance you’ve heard about Caesars sometime over the past few years. Back in mid-2018, news broke that the company was being taken over by Eldorado Resorts. This merger cost an astounding $17 billion and would form the largest US casino company in history.
This deal took much longer to complete than many initially predicted. Both Caesars and Eldorado Resorts needed to gain approval from various state gambling commissions. The companies also needed to receive permission from the FTC for the merger to finalize.
Finally, this summer, the merger was completed. Eldorado decided to retain the Caesars name, yet kept the company’s headquarters in Reno, Nevada. As of now, Caesars owns and operates 50 major casinos around the country.
The merger didn’t finish at the most ideal time. At the time of its completion, the US casino industry was still struggling to get back on track. Even today, land-based casinos around the country are still seeing significantly lower revenue earnings than they did in 2019.
Some felt that Caesars would simply hold back and wait while the gambling industry recovers. That doesn’t appear to be the case. This massive company is now set on taking over one of the world’s largest sports betting operators.
New reports claim this deal has officially been agreed to.
The Caesars-William Hill Takeover is Now Confirmed
As we just mentioned, the US gambling industry is in a very unusual position right now. Land-based casino earnings have been dropping, yet many states are seeing massive surges in sports betting revenue lately. That fact seems to have gained the attention of Caesars, which is now looking for new ways to profit off this industry.
Reports recently surfaced that William Hill was receiving offers from several companies for a potential buyout. That included Caesars, although the specific bid amount was not revealed. News has now broken that the Caesars-William Hill takeover is officially underway.
According to these reports, Caesars paid $3.7 billion to acquire the company. Company officials claim to be mostly interested in William Hill’s U.S. assets and plan to sell the majority of the company’s operations in the United Kingdom and elsewhere around the world.
Tom Reeg, CEO of Caesars, spoke about the new deal with the media this week.
“The opportunity to combine our land based-casinos, sports betting and online gaming in the U.S. is a truly exciting prospect,” Reeg said. “William Hill’s sports betting expertise will complement Caesars’ current offering, enabling the combined group to better serve our customers in the fast growing U.S. sports betting and online market.”
Interestingly, Apollo Global Management has also acquired a piece of William Hill. Some analysts speculate this company will take over the brand’s UK assets. That has yet to be officially confirmed.
This is a huge move for Caesars and should help the company establish a foothold in the sports betting market. What states will this company now begin to focus on?
US Sports Betting Market Continues to Grow
It’s been more than two years since the US Supreme Court struck down PASPA. Doing so gave every state in the country the ability to legalize sports betting. Today, 24 states have approved legislation to legalize and regulate their sports betting industries.
Unlike the land-based casino industry, sports betting has been surging this year. Many of the top US sports leagues have resumed their operations. As more seasons begin to start, sports gambling revenue increases around the country.
Revenue has been growing particularly quickly over the past couple of months. Not long ago, New Jersey saw a record-high level of sports betting revenue. Colorado has also been seeing massive earnings from this industry.
The 2020 NFL season officially began earlier this month. With the league now up and running, sports betting has been surging. Many analysts predict that states will see another record set during the month of September.
William Hill already operates in several states. With the Caesars-William Hill takeover now confirmed, it’s likely that the company will begin focusing more on states where sports betting has only recently been legalized. It certainly comes at a good time.
Are you surprised to hear that Caesars has purchased William Hill? Will this be a smart long-term investment for Caesars? Let us know in the comments section below!