The massive UK-based sports betting firm makes a deal for several land based sportsbooks in its attempt to secure a larger share of Nevada business as well as CG’s assets in the Bahamas.
William Hill USA has made another splash in the regulated sports betting market with the announcement of its purchase of CG Technology’s assets in Las Vegas in Nevada. The sports betting giant has not been shy about throwing around its capital and this acquisition confirms its intent to continue to push growth in the market.
In a press release sent out late on the 20th of November, Joe Asher, CEO of William Hill US, was quoted:
“We are pleased to have reached this agreement. This will allow us to expand our Las Vegas footprint to several marquee resorts. We look forward to working with our new casino partners and transitioning CG Technology’s retail and mobile customers to our award-winning offering.”
CG Technology, formerly known as Cantor Gaming, has had a long history managing sportsbooks in the Las Vegas, and as part of this deal, William Hill will assume control of the sportsbook leases of eases at The Cosmopolitan of Las Vegas, The Venetian and The Palazzo, The Palms, the Tropicana and Silverton Casino. This gives the company a great footprint on the Strip as well as a couple of other recently renovated properties.
Not just the U.S.
While this acquisition clearly had U.S. expansion as a theme, the deal also includes the agreement that CG Technology had with the world-famous Atlantis resort on Paradise Island in the Bahamas. William Hill will continue to be the technology provider for this sportsbook as well as providing risk management assistance to the operator.
The Bahamas part of the deal is very interesting, as this is a resort that is well known for having many elite guests. The casino has been booming at the resort for many years, and now adding the expertise of a sports betting giant like William Hill can do nothing but help boost the overall revenues of the property.
The U.S. arms race continues
Back stateside, this announcement is one that helps bolster the William Hill brand, which is in heavy competition with other sports betting providers for new business across the newly-regulated states. William Hill scored some early wins in New Jersey with clients like Monmouth Park, but that was before heavyweights like Fanduel and Draft Kings entered the picture. Now, there is a multi-horse race for business across the U.S., and with companies like Points Bet offering up huge sums of money for partnerships like theirs with Hawthorne Racetrack in Illinois, you can bet that the cost of market entry into states in 2020 will only continue to increase.
William Hill have worked along the lines of more of a full-service approach, preferring their own staff come in to manage the operations of their sports betting clients. It seemed like the right solution for many properties that lacked experience and didn’t have the time to train up properly before having to go live. However, with some of these deals coming up for renewal in a couple of years, it will be interesting to see if license holders choose to take on more of the operation on their own in return for a larger piece of the profits. If that is the case, then the company will be in a fight with more vendors for these contracts.
“We are happy to reach an agreement for the sale of the race and sports book assets of CG Technology to William Hill,” said Parikshat Khanna, the CEO of CG Technology. He continued “and look forward to a seamless transition for our loyal casino partners and customers.”
There was no formal date for the completion of the transaction. This is likely due to having to have the deal approved by two different gaming commissions, which could take some time. With both companies having a long history in the market, it is unlikely that we will see this deal rejected, so we will assume that it will be ratified in the coming weeks.