FTSE250 bookmaker William Hill is set to significantly expand its US market propositions, entering a strategic joint-venture with Nasdaq casino and leisure group Eldorado Resorts.
Sky News has reported that William Hill governance is set to disclose its deal with Reno-based Eldorado, which at present operates twenty casino properties across ten US states.
The pending agreement will see Eldorado acquire a 20% stake in William Hill’s US betting division, with the FTSE bookmaker becoming the lead supplier to Eldorado casino properties.
Further strengthening the joint-venture, both parties have agreed that Eldorado governance will be granted a ‘restricted stock access’ in William Hill shares of circa £50 million.
Maintaining a market cap of $3.7 billion, Eldorado operates casino resorts in the states of Nevada, Illinois, Ohio, Iowa, Colorado, Louisiana, Missouri, Pennsylvania and Florida.
William Hill secures its biggest US partnership to date, amid a fast-changing liberalised US sports betting market in which its FTSE competitors Paddy Power Betfair and GVC Holdings have gained rapid entry through joint-venture agreements with FanDuel and MGM Resorts respectively.
Nevertheless, as a betting operator, William Hill has the deepest understanding of servicing US consumers having operated its ‘Race and Sportsbooks’ betting operations in the state of Nevada since 2012.
This August William Hill governance revealed that its US division would be undertaking a major recruitment drive focused on technology development and expanding North American commercial opportunities.