William Hill struck a 25-year deal with Eldorado Resorts, one of the largest casino operators in the U.S., as British bookmakers "scramble to make inroads into the lucrative American sports betting market," according to Oliver Gill of the London TELEGRAPH. Eldorado will be handed $50M in William Hill stock and a 20% stake in its U.S. business. It is "the latest in a series of transactions announced by bookies" after a U.S. Supreme Court ruling "lifted a decades-long ban on sports gambling earlier this year." William Hill CEO Philip Bowcock, who previously indicated a desire for the bookmaker to remain independent in the U.S., said that the Eldorado deal would allow "flexibility" and mean "we are able to retain control and run this as we see fit going forward." The agreement "more than doubles" William Hill's U.S. presence from six to 13 states. The bookmaker's shares, which have been "hammered" by the U.K. government's planned decision to impose a £2 ($2.58) cap on wagers on fixed-odds betting terminals, rose 5% following the announcement. Barclays analyst Patrick Coffey said, "We like the profit-share element (rather than revenue-share) and like the flexibility" (TELEGRAPH, 9/5). In London, Louisa Clarence-Smith reported William Hill will become the exclusive partner "in the provision of digital and land-based sports betting services as well as online gaming" to Eldorado (LONDON TIMES, 9/5).
