British bookmaker William Hill PLC said it has received takeover proposals from Caesars Entertainment Inc. and Apollo Management International LLP, the latest sign of global interest in the growing U.S. sports-gambling market.
Sports betting in the U.S. was booming before the pandemic, and the monthslong shutdown of casinos for social distancing this year underscored the value of online sports wagering for major gambling operators. In recent months, betting companies have spun off digital arms and made big investments into online gambling, activity that has been accelerated by the impact of the pandemic on retail revenue, according to analysts.
William Hill, a London-listed company that has become a major player in the U.S., said Friday that talks with the two potential suitors were ongoing but cautioned there was no certainty of a deal. It didn’t disclose the terms of the proposals. Caesars and Apollo both declined to comment.
U.S. commercial slot-machine revenue this year through the end of July was $9.24 billion, down nearly 45% compared with the same time last year, while casino revenue from table games fell 46% to $2.6 billion, according to the American Gaming Association, an industry trade group. Meanwhile, sports-betting revenue was up nearly 19% at $394 million, with more states having legalized the industry. Online casino revenue nearly tripled for the period, to $778 million.
Twenty-two states and the District of Columbia have legalized sports wagering since a 2018 U.S. Supreme Court ruling paved the way for states outside Nevada to allow sports betting. Meanwhile, a handful of states have legalized online casino gambling. Analysts expect the roster of states welcoming sports and online gambling to expand in coming years, particularly as state lawmakers look to fill budget gaps caused by the pandemic-induced economic downturn.