Last month, UK bookmaker William Hill acquired American Wagering, Inc. and the Cal Neva Sportsbook Division for approximately $39m and brought a little bit of the UK flavour to the US. Turns out William Hill wasn’t finished. The UK bookmaker has now made a further move into the regulated land-based U.S sports betting market with acquisition of Nevada-based betting operator, Brandywine Bookmaking.
Brandywine operates as the odds maker for the Delaware State Sports Lottery which it operates in partnership with Scientific Games. Privately owned, Brandywine was licensed in Nevada in June 2008 and has rapidly established a strong operation. In 2010, its revenues were $7.7m. William Hill is acquiring Brandywine for $14.25m in cash before adjustments for working capital and is providing a $1.4m convertible loan.
Brandywine employs approximately 90 people and operates sixteen sports books in Nevada under the Lucky’s brand and one in St Kitts in the Caribbean.
Ralph Topping, Chief Executive of William Hill, said in the release:
“We see the US sportsbook industry as a great development opportunity for William Hill and are excited by the opportunity to invest in bringing together three highly respected leaders in Nevada and Delaware. Brandywine is a good strategic fit for AWI’s and Cal Neva’s sportsbook operations, and brings not only a well-regarded management team and Nevada operation but also an exclusive land-based sports-betting relationship with the Delaware State government. This business-to-government approach could prove an attractive model for other states looking to regulate land-based sports-betting. The combination of William Hill’s expertise and long track-record in the UK’s regulated market with these three leading businesses presents a good opportunity for William Hill to grow a leadership position in the US sports-betting industry while investing in Nevada and Delaware.”
“This acquisition offers not only a well regarded management team and Nevada operation but also an exclusive land-based sports betting relationship with the Delaware State government. This is particularly attractive as the business-to-government model could prove popular in other states as they regulate land-based sports betting. We look forward to working with our new colleagues to enhance their offering with the breadth of our sports-betting content and technology.”
The combined consideration for all three acquisitions is approximately $55m.
“This agreement with William Hill is a reflection of the three years of hard work by our team and the relationships we’ve built with our business partners,” said Joe Asher, president and CEO of Brandywine added in the release.