Operator News
US – Nevada Gaming Commission green lights Caesars’ purchase of William Hill
By Phil - 19 March 2021
Caesars Entertainment’s $3.7bn purchase of British betting brand William Hill has been approved by the Nevada Gaming Commission.
CEO Tom Reeg confirmed to the Nevada Gaming Commission that Caesars only wants to own the U.S. portion of William Hill’s business and will offload the international division once the deal is completed next month.
“We’re a domestic company. Our intention is to sell the international assets,” Mr. Reeg said. “The opportunity to combine our land based-casinos, sports betting and online gaming in the US is a truly exciting prospect. William Hill’s sports betting expertise will complement Caesars’ current offering, enabling the combined group to serve our customers in the fast-growing U.S. sports betting and online market.
Caesars attorney A.G. Burnett added that the buy-out wouldn’t cause any antitrust concerns because the company was ‘buying the remaining 80 per cent of what it owns.’
Gaming Commission Member Steven Cohen highlighted some monopoly concerns though with William Hill responsible for 46.1 per cent of all sports bets placed in Nevada with 64.2 per cent of the locations in Nevada.
Overall William Hill US has more than 170 sports books in 13 states, equating to a 29 per cent market share of the U.S sports betting business.
Roger Devlin, Chairman of William Hill, added: “In terms of our UK and International businesses, we believe they have a strong future ahead and we will work with Caesars to find suitable partners to further the long-term growth prospects of these businesses.”
Alternative investment management fund HBK Investments LP has said it will contest the merger.
A spokesperson at William Hill said: “HBK has suggested that the description in the scheme document of a provision of the US joint venture agreement between William Hill and Caesars, under which Caesars is able to add or substitute names to a list of “Restricted Acquirers” of William Hill, should have more specifically described the applicable time periods within which such additions or substitutions could be made.”
“The board continues to believe that the cash offer by Caesars is in the best interests of all shareholders and, having taken advice from its legal advisers and leading counsel, remains confident that the court will sanction the scheme at the scheme court hearing,” the company added.
The court hearing to complete the dealhas been delayed by one day to March 31 in order to allow the court time to hear and consider HBK’s representations.
