One of the largest US land-based casino operators, Eldorado Resorts will buy a 20 percent share in William Hill US as part of a larger partnership agreement with Nevada's leading sports wagering operator.
The deal has come just a few months after the Supreme Court overturned a ban on sports betting in most states and it has prompted many industry partnerships and joint ventures as companies seek national access to the US gambling market.
Credit Suisse predicts the sports wagering to be legal in 20 states by the end of 2023 and generate $4.5 billion of revenues.
It also comes a day before the first National Football League gets underway. The National Football League and college football account for a significant portion of all US sports betting. Eldorado expects its casinos in Mississippi and West Virginia to allow its citizens place bets in this NFL season.
William Hill US will now get exclusive rights of managing Eldorado's casino sports books for 25 years, stated a joint release that was issued on Wednesday.
Reno-based Eldorado will operate 26 casinos in 13 states when it completes the acquisition of Tropicana Entertainment later this year.
"We have spent considerable time searching for a potential partner who can get associated with us to build a business of scale in the United States," said William Hill PLC Chief Executive Officer Philip Bowcock during a talk with analysts.
William Hill US will be operating 137 books in the U.S. by the end of the year, including Nevada, and is looking for more, Bowcock said.