The word on the street was true. Caesars bought British bookmaker William Hill a slick sum worth $3.7 billion. The mega-casino conglomerate in the US wanted to shore up its sports betting arm.
Gordon Gekko said it best, “Greed is good.”
Apollo Global Management wanted to buy William Hill, so they let Caesars Entertainment know what's up. Caesars Entertainment let Billy Hill know that they'd terminate some of their business relationships, which in turn ended Apollo's courtship. When the dust settled, Apollo stepped aside and Caesars Entertainment secured William Hill for $3.7 billion.
Of course, there's a few hoops to jump through with state regulators poking their nose into the details of the acquisition. After an army of lawyers dig through all the paperwork, the deal should finalize in late 2021.
There's an arms race going on and Caesars just got a leg up on their competitors, especially MGM Resorts.
"The opportunity to combine our land based-casinos, sports betting and online gaming in the U.S. is a truly exciting prospect," said Caesars Entertainment CEO Tom Reeg. "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. We look forward to working with William Hill to support future growth in the U.S. by providing our customers with a superior and comprehensive experience across all areas of gaming, sports betting and entertainment."
Over the summer, Caesars Entertainment and Eldorado Resorts finally merged after long speculation on whether it would actually happen. But the New Jersey Casino Control Commission finally signed off on the deal, which went thru.
The CE/ED merger, now called New Caesars, was worth over $17 billion for 51% of the old Caesars Entertainment.
Two months after the birth of New Caesars, they found new lands to conquer in the British Isles. New Caesars gobbling up Billy Hill marked just another mega-monstrous deal in the gambling industry.
After the Eldorado deal, New Caesars currently owns over 52 casinos spread out over 16 US states, including nine in Las Vegas. They also own three properties in Atlantic City (Harrah's, Caesars, and the Tropicana) and part of the deal's approval in NJ meant that that New Caesars would not shut those down.
The consolidation of the gambling world continues, as the online/live gambling realm is worth upwards of half-trillion bucks.
A year ago, PokerStars was acquired by Flutter Entertainment to create a behemoth gaming giant feature several of the top brands in the online gambling universe. Flutter generated $2.7 billion in revenue in 2019 operating in a mega-European entity that included Betfair, Paddy Power, and Fan Duel.
At this rate, by 2030 there will be one massive single conglomerate like Umbrella Gaming that owns every single casino, online poker room, slot machine, sportsbook, Pai Gow table, and even those Sigma Racing derby machines.
But for now, it's a major arms race between mega corporations gobbling each other up.