British gambling giant Entain Plc has taken into consideration a possible bid for some assets of William Hill, targeting a rival only several months after rejecting an unsolicited $11-billion takeover offer from MGM Resorts International.
Jette Nygaard –Andersen, the operator’s new CEO who took over at the beginning of the year, revealed plans to consider the non-US assets of William Hill that have been put up for sale by the company’s new owner Caesars Entertainment. Some popular WH properties in the UK are also among the non-US assets that are being sold by Caesars. Ms Nygaard-Andersen said that the company is taking everything into consideration, including whether such an acquisition could be a good opportunity for Entain.
If such a deal is made, it would bring massive consolidation in the British high-street betting shop sector, in which Entain already holds a 40% share. The gambling operator has been interested in purchasing the non-US assets of William Hill under its previous chief executive officer last year.
According to reports, the global online gambling market will see a double-digit increase on an annual basis to as much as $158 billion in 2028. The significant expansion of the sports betting market on a global scale fuelled fierce competition by gambling operators, private equity firms, owners of sports teams and media companies, all of whom have been trying to establish a strong presence in the quickly-growing sector.
Huge Merger and Acquisition Wave in the Global Gambling Market
Regardless of being a gambling giant, Entain almost faced a blow as a result of the aforementioned competition. In January 2021, the company that currently owns British bookmaker brands Ladbrokes and Coral turned down an offer made by MGM Resorts, saying it was too low. At the time, the company also appointed Ms Nygaard-Andersen at the CEO position.
The gambling operator was on a way to enlarging its assets itself. Last month, Entain officially announced it finalised the acquisition of the Swedish online betting operator Enlabs AB, with the deal providing it with the chance for a massive presence in the Baltics gambling market. The British gambling company is also looking to take over some of the assets of one of the largest betting operators in Australia, Tabcorp Holdings, with the potential deal between the two companies estimated to more than $2.5 billion.
As reported by Bloomberg, the overall volume of casino deals that were already completed or were still pending has marked a 33% growth, reaching $22 billion so far in 2021. Some of the most significant transactions in the sector include the merger between Gamesys Group Plc and Bally’s Corp. and the acquisition of the Venetian in Las Vegas by Apollo Global Management.
The new CEO of Entain, Ms Nygaard-Andersen has confirmed that the British gambling giant will continue to pursue further growth and add some new betting options to its offerings.
- Author
Olivia Cole
