William Hill Sportsbooks to be Rebranded as Caesars
After acquiring William Hill for about $4 billion in April, Caesars Entertainment is looking to be aggressive with its newly acquired operator.
During Tuesday’s 2021 first quarter results call, Caesars Chief Executive Officer Tom Reeg said the operator will start the process of selling William Hill’s non-U.S. assets over the next two months. Reeg also said that William HIll’s retail sportsbooks will be rebranded to Caesars and the sportsbook app will be called Caesars Sports and tie into the Caesars rewards database.
Over Q1, the combined digital business between Caesars and William Hill recorded around $150 million in revenue.
“(The transaction) took a little longer than we had expected in the court hearing,” Reeg said on the call, “but we got to the outcome that we wanted and now we control our own destiny and what I continue to believe is an extraordinarily exciting opportunity for the company.”
Caesars on April 22 announced the completion of the deal to acquire the UK-based for approximately $4 billion. A ruling by the High Court of Justice in England and Wales had cleared the way for the deal to be finalized.
Reeg also made it known that Caesars is prepared to financially back its sports betting product. According to the company’s research, more spending can result in an increased market share for the company.
“As I look at what's out there in sports and do the analysis of the numbers that we can see, there's some things that make us optimistic,” he said. “There's a degree of correlation between spend and market share at this point. Not quite so much for brand or other non-spend categories. That's a good sign for us, when I talk about the cash flow that we're generating right now.
“We understand that we're going to need to invest in this business, both on the tech and the customer acquisition side. And you should expect a significant shift from us as we close the transaction and move forward.”
Reeg also mentioned Caesars’ plans to invest more than $100 million a month to grow the sports betting product.
“You shouldn't expect us to be just throwing money away to buy market share,” he said. “You should expect us to build this thoughtfully, but you shouldn't expect to see a significant increase in investment in this side now that we've got all our ducks in a row.”
Caesars Positioning Itself in US Market
Caesars has recently attempted to grow its market share in the U.S. through marketing and sports betting partnerships. In mid-April, the sports betting company was named as one of the three partners of the NFL, along with DraftKings and FanDuel.
The NFL became the last of the four traditional major North American professional sports leagues to announce a sports betting partnership. In the media release, the league referred to the three operators as “tri-exclusive” partners.
In March, The Athletic reported that Caesars earned naming rights to the New Orleans Saints’ Superdome. The deal is reportedly for 20 years and worth $10 million annually.
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