US casino firm Caesars agrees £2.9bn deal for British bookmaker William Hill

Deal unanimously recommended by the UK company’s board

Caesars already owns a 20% stake in William Hill's US operations (AFP via Getty Images)

US casino giant Casars has agreed a £2.9bn takeover of British bookmaker William Hill.

Under the deal, Caesars will pay 272p per share, which is a 25 per cent premium  on William Hill's share price last Thursday. 

The deal, which must be agreed by three-quarters of William Hill shareholders, was unanimously recommended by the UK company’s board.

Caesars already owns a 20 per cent stake in William Hill's US operations, which also have exclusive rights to operate sports betting under the Caesars brand

Last week, William Hill said it had also received a takeover approach from private equity firm Apollo but it has rejected that offer in favour of Caesars.

Caesars is particularly interested in William Hill's US bookmaking business which has 170 sites in 13 states.

Gambling profits are on the rise in the US after a long-standing ban on sports betting was ruled unlawful by the Supreme Court. Campaigners have warned of an increase in the risk of addiction and gambling-related harm.

Last month, William Hill said it would reopen 119 of its UK High Street betting shops after the coronavirus shutdown, because it thought customers numbers were unlikely to recover.

UK bookmakers have been making an increasing share of their profits from online gambling.  

William Hill chairman Roger Devlin, chairman, said: "The William Hill board believes this is the best option for William Hill at an attractive price for shareholders.

"It recognises the significant progress the William Hill Group has made over the last 18 months, as well as the risk and significant investment required to maximise the US opportunity, given intense competition in the US and the potential for regulatory disruption in the UK and Europe.

"Under the revitalised senior leadership team, William Hill has been delivering on its strategy and potential."

Tom Reeg, chief executive of Caesars, said: "The opportunity to combine our land-based casinos, sports betting and online gaming in the US is a truly exciting prospect.

"William Hill's sports betting expertise will complement Caesars' current offering, enabling the combined group to better serve our customers in the fast-growing US sports betting and online market.

"We look forward to working with William Hill to support future growth in the US by providing our customers with a superior and comprehensive experience across all areas of gaming, sports betting and entertainment."