888 Interested In Buying William Hill’s European Business

Even betting giant William Hill was not immune to the financial impact of the pandemic. With sporting events cancelled and their massive reliance on brick-and-mortar storefronts, despite having a popular online casino, the bookmaker found itself in serious financial straits.

So much so that they posted losses last year in excess of £63 million. This in addition to the furlough debt it incurred of more than £24 million. With the UK and surrounding regions going in and out of lockdown as infection numbers fluctuate there is little hope of the UK and European betting market rectifying itself in the short to medium term.

Most of the news being covered regarding William Hill in the past few months has been that of its store closures and the impact of these job losses on local communities. That is until the news hit that American gambling powerhouse Caesars Entertainment was interested in buying William Hill for the astounding sum of £2.9 billion.

 William Hill To Be Parcelled Out

In an interesting twist, Caesars Entertainment announced that should the buyout receive approval at both the shareholder and regulatory level it would only be interested in keeping William Hill’s US-facing portfolio.

This is due to the fact that William Hill currently holds more than 170 betting stores in the USA, with Caesars Entertainment already owning a 20% share. This deal gives them full control over that lucrative business unit with an established revenue stream and storefronts.

Caesars is bullish on the future of regulation in the USA with their reports predicting short term revenue boosts of as much as £543 million from this acquisition, plus a long term view on the market that sees it topping £27 billion.

 888 Holdings Ltd Steps Up

However, this surprising decision to parcel off William Hill rather than controlling a global betting brand has led to speculation about who might be interested in acquiring William Hill’s UK and European business.

The first entity to throw its hat in the proverbial ring has been 888 Holdings. Itai Pazner, Chief Executive of 888, noted that they would be interested in acquiring William Hill assets from Caesars Entertainment should the opportunity arise.

There is always the chance that Apollo Investments makes a reappearance as well. The private equity firm is showing a lot of interest in UK assets with a reported bid of £6.5 billion on the table to acquire British supermarket retailer Asda. The option to acquire William Hill’s European assets could fit nicely into their current portfolio.