Gaming experts believe that William Hill’s recent agreement to acquire CG Technology is the first step to merging other companies. Last week, William Hill reached an agreement with CG Technology to acquire its Las Vegas sportsbooks at Cosmopolitan, Tropicana, Venetian, Palazzo, Palms, and Silverton casinos. Global Market Advisors told Las Vegas Review-Journal that the company’s merger and acquisition have just begun.
In May 2018, the US Supreme court permitted states to determine the laws and regulations to regulate sports betting. Since then, 13 states have legalized sports betting, and seven more are in the process of legalization.
Sportsbooks Merging Casinos
When compared to slot machines and table games, the gross gaming revenue (GGR) earned per square foot from sportsbooks is less by far. This assumption has prompted large casino operators in the US to partner with sportsbook specific companies as gambling becomes legal in more states. On the other hand, MGM Resorts merged with GVC for a combine sports betting arrangement. The companies said the merger would give them an advantage in the opening market of sports wagering in the US.
Casino.org reported that Eldorado is acquiring Caesars Entertainment as unspecified share in DraftKings, Boyd Gaming, and a four percent shares in FanDuel. Eldorado also has a 20 percent ownership in William Hill US enterprise.
Due to high taxes by the state on GGR, the partnership seems a good idea in expanding operations for casinos and sportsbooks. According to Global Market Advisors, sportsbooks operators retain 40 percent of revenue before earning taxation. However, larger operations could achieve a more considerable profit margin on revenue.
William Hill Focus In Florida
In case Florida legalizes sports betting, then William Hill will open the pari-mutuel simulcast wagering lounge. The facility will then be expanded into the full-scale sportsbook. The partnership between MGM and William Hill will be a prime entry into Florida’s future sports betting market.