The recently merged Caesars Entertainment is further expanding its gaming footprint as the company announced an agreement to acquire international betting company William Hill.

The deal for UK-based William Hill, which Caesars officially announced on Tuesday evening, is a cash acquisition worth £2.9 billion — about $3.7 billion at the current exchange rate. 

The acquisition fully places the largest sports betting operation in the United States under the Caesars Entertainment banner. Caesars already owned a 20% stake in William Hill prior to the acquisition announcement.

“The opportunity to combine our land based-casinos, sports betting and online gaming in the U.S. is a truly exciting prospect,” said Tom Reeg, Caesars Entertainment CEO, in a statement. “William Hill’s sports betting expertise will complement Caesars’ current offering, enabling the combined group to serve our customers in the fast-growing U.S. sports betting and online market.”

Read More: Eldorado Resorts is now Caesars Entertainment as Reno history for both comes full circle

William Hill executives welcomed the deal, touting the acquisition as an opportunity to further push the company’s diversification efforts and expand its operations.

“It recognizes the significant progress the William Hill Group has made over the last 18 months, as well as the risk and significant investment required to maximize the U.S. opportunity given intense competition in the U.S. and the potential for regulatory disruption in the U.K. and Europe,” said William Hill Chairman Roger Devlin. 

“We will work with Caesars to find suitable partners to further the long-term growth prospects of these businesses.”

The deal occurs just two months after the $17.3 billion merger between Eldorado Resorts and Caesars Entertainment. The merger transformed regional player Eldorado into the largest casino and gaming company in the United States. 

The acquisition of William Hill gives Caesars a firm foothold in the online gaming and sports betting market at a time when more states are becoming increasingly open to the sector. Caesars believes the online gaming and sports betting space to be worth up to $35 billion, citing analyst estimates. The company projects that it will generate between $600 million to $700 million in revenue from its expanded online gaming and sportsbook operations during the 2021 fiscal year. 

William Hill, which established its U.S. division in 2012, also has operations in the Bahamas as well as European countries such as Italy, Spain and Sweden.

Jason Hidalgo covers business and technology for the Reno Gazette Journal, and also reviews the latest video games. Follow him on Twitter @jasonhidalgo. Like this content? Support local journalism with an RGJ digital subscription.

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