Hill climbs into the US gaming market

William Hill, Britain’s biggest bookmaker, will move into the US gaming market for the first time after agreeing to buy two American sports betting businesses for $39m (£23m).

William Hill, which has around 2,300 betting shops in Britain and Ireland, said that it would pay $18m in cash for Nevada-based American Wagering Inc and $21m for the Cal Neva sportsbook division, which is a part of the Sierra Development Company.

“These acquisitions mark William Hill’s entry into the strategically important US market, taking a leading position in sports betting,” William Hill’s chief executive Ralph Topping said in a statement.

Hide Ad
Hide Ad

“We see significant opportunities for growth by investing in Nevada and arising from the combination of these business- es.”

AWI and Cal Neva operate sportsbooks in casinos and taverns throughout Nevada.

AWI also supplies sportsbook technology to larger casino groups who manage their own sportsbooks.

In the US, sports betting is legal under federal law in Nevada, Delaware, Montana and Oregon, though Nevada is the most significant and had an estimated turnover of $2.7bn in 2010, according to William Hill.

Hide Ad
Hide Ad

The group said before completing the acquisitions, the company and some of its senior managers would have to be licensed by the Nevada Gaming Commission.

Shares in William Hill, which have risen 8 per cent in the last three months, climbed to a closing price of 185.80p last night, a rise of 0.10p.

Related topics: