Eldorado Resorts Completes Transaction with William Hill
Eldorado Resorts has announced that it completed its previously announced transaction with whereby William Hill US will serve as Eldorado’s sports betting operator for a period of 25 years at its properties in jurisdictions where sports betting is legal.
Pursuant to the terms of the agreement, Eldorado received a 20% equity stake in William Hill US as well as 13.4 million ordinary shares of William Hill PLC. Eldorado also secured the right to monetize its equity in William Hill US in the event William Hill US completes a public offering or through a conversion of the 20% equity stake to William Hill PLC shares or cash at William Hill’s discretion after five years.
Eldorado Resorts’ Chief Executive Officer, Tom Reeg, commented, “Extending our long-term relationship with William Hill partners Eldorado with the world’s leading provider of in-casino, mobile and online sports wagering to launch sports wagering across our current platform of 26 properties at such time as legislation is enacted and regulatory approvals are obtained. Based on our long-term experience in Reno, we believe that the addition of sports wagering to our entertainment offerings will drive customer visitation and create a new revenue stream at our properties while enhancing our existing gaming and non-gaming revenue.
“Our ability to capitalize on the expected expansion of online betting and gaming is further enhanced by the 20-year definitive agreement that we entered into with The Stars Group granting it the option to access our second skins for online sports wagering and our third skins for real money online gaming and poker operations in the United States. In consideration for our partnership with TSG, we received an upfront equity interest in TSG and, to the extent that TSG exercises its options as online gaming and betting is legalized in various jurisdictions, we will receive a revenue share related to these verticals as well as potential further equity consideration based on certain conditions.”
Eldorado’s 20% equity stake in William Hill US includes all of William Hill US’ existing businesses in Nevada, New Jersey, Delaware, Iowa, Mississippi, West Virginia, along with The Bahamas and St. Kitts, as well as future Eldorado and non‐Eldorado U.S. business. William Hill US generated adjusted operating profits of $28.5 million in 2017. William Hill US and Eldorado are expected to invest equally in the development and construction of in-casino sports books as well as in the infrastructure needed to support in-casino wagering as well as mobile and online wagering. William Hill US has also secured the right to operate online sports betting under the first skin and any third skin for such betting activity held by Eldorado and online real money casino gaming under any second skin for such gaming activity held by Eldorado.