William Hill Banks on Bettors in Purchase of Cosmopolitan, Venetian, Palazzo Sportsbooks From CG Technology

Posted on: November 20, 2019, 08:51h. 

Last updated on: November 21, 2019, 10:03h.

Todd Shriber @etfgodfather Read More
Expertise: Financial, Gaming Business, Mergers and Acquisitions.

William Hill Plc (OTC:WIMHY), one of the world’s largest sportsbook operators, added to its portfolio of retail sports wagering locations Wednesday. It’s acquiring the books at the Cosmopolitan, Palazzo and Venetian on the Las Vegas Strip from CG Technology (CGT).

William Hill is getting some prime Vegas sportsbooks in a deal with CG Technology. (Image: Vegas Parlay)

The British sports betting behemoth is also getting the sportsbooks at the Palms, the Tropicana, and Silverton, and CGT’s Bahamas operations. As part of the deal, William Hill provides “a betting platform and risk management consulting to the Atlantis on Paradise Island.”

Neither financial terms nor a closing date for the transaction were announced.

We are pleased to have reached this agreement. This will allow us to expand our Las Vegas footprint to several marquee resorts,” said William Hill CEO Joe Asher in a statement.

The companies’ paths crossed earlier this year when Penn National Gaming, owner of the Tropicana, replaced CGT with William Hill as the operator of the sportsbook at the M Resort in Sin City.

With the sales of the sportsbooks at Cosmopolitan, Palazzo, Venetian, Silverton and Tropicana, CGT Technology significantly whittles its retail sports betting presence in its home town of Las Vegas. The company’s website says it runs the sportsbook at the off-Strip Hard Rock Las Vegas, but that property is slated to close early next year as part of its transition to becoming a Virgin hotel.

Solidifying In Sin City

Prior to revealing the asset purchases from CGT Technology, William Hill operated 113 Nevada race and sportsbooks. On its website, the company says its Las Vegas books are at Arizona Charlie’s, Jerry’s Nugget Casino, the Plaza Hotel & C’asino, Silver Sevens, the STRAT, and the aforementioned M.

The company is likely to expand its Sin City footprint as Eldorado Resorts, Inc. (NASDAQ:ERI) finalizes its $17.3 billion takeover of Caesars Entertainment Corp. (NASDAQ:CZR), one of the largest gaming operators on the Strip.

William Hill has a long-standing partnership with Eldorado, which the UK-based company believes extends to acquisitions the regional firm makes.

“These rights apply to casino properties owned or managed by Eldorado when the strategic partnership was signed and any subsequent acquisitions,” said William Hill in a statement issued soon after Eldorado announced its offer for Caesars. “Therefore, the rights apply to casinos currently owned or managed by Caesars if Eldorado’s acquisition of Caesars is completed.”

Caesars operates nine Las Vegas properties.

Mixed Reaction

Emotions ran high on “Sports Gambling Twitter” on Wednesday when the William Hill/CG news broke, with some users decrying the dwindling number of independent sportsbook operators on the Strip.

“This is like buying up the high-quality steakhouse and replacing it with McDonald’s,” said one Twitter user in reference to the news.

As for CGT, it remains to be seen where the company, which has often drawn the ire of regulators, goes from here. Formerly Cantor Gaming, the company paid a $2 million fine to the Nevada Gaming Commission (NGC) last year to retain its license to settle charges of rules violations.

As Casino.org reported at the time, CGT’s $2 million levy put the company into ominous territory as having paid three of the 10 largest penalties ever handed down by the NGC.