William Hill Partners with Eldorado Resorts for Major US Expansion

William Hill has reached an agreement with Eldorado Resorts to further expand its reach across the United States. Eldorado Resorts is a major casino operator with properties in eleven states, including three states (Mississippi, Pennsylvania and West Virginia) that have legalized sports betting since the Supreme Court struck down PASPA.

In a press release, Eldorado Resorts and William Hill announced they have entered an agreement that will make William Hill the exclusive sports betting operator for 25 years at all Eldorado properties located in jurisdictions where sports betting is legal. The deal includes retail, online and mobile sports betting where permitted by law.

In return, Eldorado Resorts will gain a valuable online betting partner in William Hill. Eldorado Resorts will also gain a 20% equity stake in William Hill US and receive $50 million worth of William Hill PLC shares.

“We are excited to extend our existing relationship with William Hill through this agreement to offer in-casino, mobile and online sports wagering to our customers nationwide, subject to regulatory and legal approvals in our 11 current jurisdictions as well as the addition jurisdictions we expect to enter through our pending transaction with Tropicana Entertainment,” said Gary Carano, Chairman and CEO of Eldorado Resorts in the press release.

What This Deal Means for Both

William Hill and Eldorado Resorts both stand to gain significant ground with this deal. Eldorado Resorts will be able to lean on William Hill for technical and practical expertise in offering retail and online sports betting. William Hill is a massive international gambling operator whose history dates back to 1934.

Eldorado Resorts already works with William Hill in Nevada, so partnering with one another in additional states will not require a major paradigm shift for either company. They’ll simply be deepening what is already a solid working relationship. Currently, William Hill manages the sports betting operations for Eldorado Resort Casino in Reno, Circus Circus in Reno and the Silver Legacy Resort in Reno.

The deal is even more significant for William Hill as it paves the way for entry into additional US betting markets. Laws enacted in Delaware, New Jersey, West Virginia and Mississippi all limit sports betting to the operators of licensed brick-and-mortar casinos. Most likely, other states will follow a similar model as they pass their own sports betting laws.

Eldorado Resorts operates 21 properties in eleven states currently: Nevada, Louisiana, West Virginia, Illinois, Ohio, Colorado, Florida, Iowa, Missouri, Mississippi and Pennsylvania. The completion of Eldorado’s acquisition of Tropicana Entertainment will further extend that reach to 26 casinos spread across 13 states.

With this deal, William Hill will soon be present in all states that have legal sports betting plus the possibility of entering other states in tandem with Eldorado Resorts as additional states pass similar legislation.

William Hill is currently active in Nevada and serves as the “exclusive risk manager” for the Delaware Lottery’s sports betting operations. Additionally, William Hill operates an online sportsbook and the retail sportsbooks for Monmouth Park and Ocean Resort in New Jersey.

Mississippi, West Virginia and Pennsylvania have also legalized sports betting since the end of PASPA. William Hill is not yet active in those states, but the deal clears the way to enter those states in tandem with Eldorado properties in each state.

William Hill Sports Betting Rapidly Expanding in the US

William Hill’s deal with Eldorado Resorts is just the latest move the company has made in recent months to establish itself in the US sports betting market. Over the Labor Day weekend, William Hill launched its first mobile sportsbook in New Jersey.

Just last month, William Hill announced it has reached agreements with 11 casinos in Mississippi for retail sports betting and with one casino in West Virginia to provide retail and online betting. William Hill is also partnered with Hollywood Casino to offer sports betting in Pennsylvania.

FT.com has also reported William Hill plans to open five sportsbooks in New Jersey, West Virginia and Mississippi “within weeks.”

The quick expansion of William Hill in the United States couldn’t come at a better time as the company struggles in the United Kingdom. A recent decision by UK authorities to enforce severe betting limits on fixed-odds betting terminals (FOBTs) resulted in William Hill booking a pre-tax loss of £819.6 million in its latest financial report.

William Hill has said the decision to limit FOBTs may result in the closure of up to 900 retail betting shops and puts 4,500 jobs at risk. As regulators continue to crack down on sports betting operators in the UK, William Hill is increasingly turning its attention to the nascent sports betting market in the USA.