SBC News Philip Bowcock: Eldorado JV sees William Hill secure 'largest active US betting footprint'

Philip Bowcock: Eldorado JV sees William Hill secure ‘largest active US betting footprint’

The governance of FTSE250 bookmaker William Hill has confirmed news reports that it has entered a strategic joint-venture with Nasdaq US casino group Eldorado Resorts.

William Hill Chief Executive Philip Bowcock declares that the bookmaker has significantly advanced its US position and coverage securing access to ‘Eldorado’s leading regional casino portfolio and customer base of 23 million people’.

“Under the terms of the agreement, William Hill becomes Eldorado’s exclusive partner in the provision of digital and land-based sports betting services as well as online gaming.  As a result, William Hill’s reach now extends to 13 states where sports betting is either legal or sports betting bills are tabled” details William Hill governance.

The joint venture will now move to establish sportsbook premises in the following casinos across three US states – The Tropicana in Atlantic City, New Jersey; The Mountaineer Casino Racetrack and Resort in West Virginia and three casinos in Mississippi – The Lady Luck Casino in Vicksburg, Isle of Capri in Lula and Tropicana Casino in Greenville.

Updating investors, William Hill CEO Philip Bowcock commented on the joint-venture: “Partnering with Eldorado gives William Hill access to one of the largest and most attractive casino footprints with 23 million customers across multiple states. This partnership provides extensive cross-sell and profit growth opportunities to both parties. Together, we are positioned to capture the evolving US opportunity – starting with land-based sports betting and extending to digital sports betting and, in some states, online gaming.”

Forming the Eldorado-William Hill US alliance, deal stakeholders have outlined that the joint venture will operate under the following terms:-

  • The partnership extends the reach of William Hill US and covers Eldorado’s 26 properties across 131states, plus any new properties it may acquire or develop.
  • William Hill US retains 80% of the enhanced business, retaining strategic flexibility with both parties incentivised to grow digital and land-based sports betting in the US.
  • Eldorado receives $50m of stock in William Hill PLC (equivalent to circa 1.6% of its market capitalisation), subject to a 3-5 year lock-up a 20% stake in William Hill US and a share of profits attributable to its licences, closely aligning the two partners’ interests.
  • Investment in sportsbooks in five existing casino properties set to begin imminently with capital expenditure jointly split between the partners.
  • The agreement is for an initial 25-year term.
SBC News Philip Bowcock: Eldorado JV sees William Hill secure 'largest active US betting footprint'
Gary Carano – Eldorado Resorts

Backing William Hill as joint-venture partner and lead betting systems supplier, Gary Carano, Chairman and Chief Executive Officer of Eldorado Inc, commented: 

“Having worked with the company since 2012, we believe William Hill represents the gold standard in global sports betting and we are confident that our expanded partnership will be successful.  We look forward to bringing the excitement of sports betting to customers across our growing platform of leading casino resorts, creating value for all shareholders.”

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