William Hill signed a binding agreement to acquire Brandywine Bookmaking, a land-based sports betting business operating in Nevada and Delaware.
This follows the group’s recent announcement that it had signed binding agreements to acquire two Nevada land-based sports betting businesses, American Wagering and the Club Cal Neva Satellite Race and Sportsbook Division, announced on April 14.
Sports betting is currently legal under federal law in Nevada, Delaware, Montana and Oregon, US. Nevada is the largest with an estimated turnover of $2.7bn and gross win of US$151m generated in 2010 from approximately 190 locations.
Brandywine operates 16 sportsbooks in Nevada under the Lucky’s brand and one in St Kitts in the Caribbean. In addition, it is the exclusive odds maker for the Delaware State Sports Lottery, which it operates in partnership with Scientific Games. Scientific Games and Brandywine launched sports betting at the three Delaware casinos in September 2009. Privately owned, Brandywine was licensed in Nevada in June 2008.
William Hill is acquiring Brandywine for $14.25m in cash before adjustments for working capital and is providing a $1.4m convertible loan; C$16m of enterprise value in total.
As reported at the time of the AWI and Cal Neva acquisitions, William Hill and certain William Hill senior managers are in the process of applying for a non-restricted gaming licence from the Nevada Gaming Commission. This potential acquisition, together with those of AWI and Cal Neva Sportsbook Division, will complete only after successfully finalising the licensing process, which is expected during 2012.
The combined consideration for all three acquisitions is approximately $55m.
Ralph Topping, chief executive of William Hill, commented: “Brandywine is a good strategic fit for AWI’s and Cal Neva’s sportsbook operations and will give William Hill a leading position in the US land-based sports betting market. 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.”
