Is 888 still in play?
British bookie William Hill, the UK’s biggest bookmaker at the start of the year, is no longer top dog in the industry, thanks to a series of mergers that took place over the summer.
According to the Irish Independent, William Hill has been supplanted by new alliances between Ladbrokes and Gala Coral as well as Paddy Power and Betfair. Online gaming firm GVC has also agreed to an ?1.1 billion (US$1.7 billion) deal for Bwin.Party. These mergers, the Independent said, are the result of “tighter regulation and tax pressures in Britain and continental Europe that are taking chunks out of profits.”
HSBC analysts say William Hill “could benefit from a potential partnering up with another operator, now it has more credible competition coming. But it’s hard to see exactly who.” Last year, the bookmaker made a play for online company 888, offering ?720 million (US$1.1 billion). That deal collapsed, but could still come to fruition. Such a merger would give William Hill a stronger technology base and strong casino and bingo positions, analysts believe. Privately owned Bet365 may be too pricy, and also has a presence in unregulated markets that William Hill may want to avoid, the Independent reported.
Peel Hunt analyst Nick Batram says William Hill may be willing to yield its position in the UK to grow in the United States, Latin America and Scandinavia. “Gaming is a global market and I would expect them to be looking globally at where they might go,” he said.
HSBC analysts seem to agree, saying, “Ultimately, we see it pressing on alone, perhaps buying more foreign assets and developing its own technology internally.”
