Auction Of William Hill Betting Shops Draws Potential Buyers. Both Apollo and 888 Casino are prospects that have signified their interest. (Image Source: Williamhill.com)
Less than 2 weeks ago, Las Vegas-based casino, Caesars Entertainment was set to complete its 3.69 billion dollars acquisition of William Hill, and the firm is expected to auction off the 1,400 retail shops earlier owned by the British bookmaker soon. According to reports from The Telegraph, the gaming giant will put finishing touches on the sale of William Hill’s brick-and-mortar casino locations in the coming week and the transaction will include the UK and Europe online sports betting and internet casino operations.
Shortly after Caesars Entertainment disclosed last September that it wants to bid for the takeover of William Hill, it also clarified that it will eventually ditch William Hill’s operations across Europe. 888 Holdings and Apollo Global Management, a private equity firm (defeated by Caesars Entertainment in the bid for William Hill) are two companies among others that will potentially bid for William Hill’s European assets.
The Telegraph reported that sources that have enough knowledge of the matter revealed to them that Apollo is better positioned to clinch the deal because it has more funds than 888. Earlier this year, there were rumors that Apollo is targeted for a takeover; however, it remains speculation because the Israeli operator of poker and online casino venues has not announced such development.
Apollo is a Logical Suitor
Apollo has been very active on the gaming takeover front in the past few months and this is evident by its interest in the acquisition of William Hill. The private equity firm took over GCGC (Great Canadian Gaming Corp.) and is also in partnership with VICI properties to acquire the Las Vegas Strip-based Venetian and Sands Expo and Convention Center for 6.25 billion dollars.
The Telegraph also reported that Apollo has an existing asset which it could pair the European unit of William Hill with. The firm is now expected to merge its Italian gambling operator – Gamenet and William Hill so as to cut costs. Apollo paid 1.15 billion dollars to International Game Technology for the purchase of Italian digital gaming, sports wagering operator, and gaming machine – Gamenet Group last December.
888 Casino another Logical Suitor
888 Casino on the other hand is also a logical suitor because it has its focus on poker and iGaming which indicates that the purchase of a sports wagering could complement its existing collection nicely. The Telegraph reports that other bidders for William Hill’s European asset and operations could include Betfred although the move can generate regulatory concerns because Betfred already owns and controls 1,600 retail locations in the United Kingdom. Swedish operators Kindred Group and Betsson could also be logical suitors, especially because Mr. Green (owned by William Hill) is already famous in Sweden.
Cost Defrayers for Caesars
Caesars Entertainment is already in heavy debt in the gaming industry, but it still went further to obtain 2.3 billion dollars in bridge financing to solidify its acquisition of William Hill. According to analysts, the sale of William Hill’s European assets will fetch Caesars Entertainment at least 2 billion dollars which implies that the firm is likely an aggravated seller and needs the proceeds for certain uses.
There could be a screw-up to the proposed acquisition plan if Caesars attempts to offload its 9 casinos in the UK. The management of the firm is of the view that it is indifferent on the international markets and that it would be proficient to sell the venues together with the William Hill assets. It is said that Apollo is financially capable and has the operational experience to execute the acquisition deal, although it is unclear whether the firm wants those casinos. According to The Telegraph, Caesars Entertainment purportedly almost sold the casino venues to a gaming entity from Canada, but unfortunately, the deal was not successful.
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