William Hill Australia will be soon ruled by CrownBet
The online casino industry has been a witness of important events since the very beginning of this year.
The year is looking pretty bright for Stars Group. By signing a binding agreement to buy William Hill Australia they have upped their stake in CrownBet Holdings.
All these transactions will totally cost US$315m. The purchase price for William Hill Australia will be US$234m in cash. The rest will be paid in 3.1 million shares of CrownBet newly-issued. By this agreement the Stars Group increases to 80% their stake in CrownBet.
Earlier last week the PokerStars owner bought 62% of the operator. The purchase price was US$117.7m.
The decision of the Stars Group
The CEO of the Stars Group, Rafi Ashkenazi has recently announced their hopes that the new acquisitions will help them raise the position of their business on the Australian sportsbook market. The complementary geographic profile of the company together with their combined business will accelerate CrownBet’s operating and propriety technology platform. From the other hand, this will provide a better position to go through the current ongoing regulatory and taxation amendments on the Australian market.
William Hill are planning something else – to sell their Australian Division. This is a preventive measure as gambling restrictions in the country could affect their profit. The Australian Division of William Hill operates licensed online gambling. Bet365 as well as Paddy Power Betfair are really interested in the acquisition of the division. Actually CrownBet was quick in striking a deal.
After obtaining the regulatory approvals from the Foreign Investment Review Board as well as the Northern Territory Racing Commission the deal can be implemented. The disposal proceeds will be used to reduce the indebtedness and to further support the growth of William Hill group.
William Hill Business
The chief executive at William Hill, Philip Bowcock declared the position of the company regarding the disposal. The decision to sell has been made after a strategic review of the business. The pressure on the profitability of the company caused by the recent credit betting ban and the possible introduction of a Point of Consumption tax were the real cause to make the decision to sell.
William Hill hope to have more time and attention for the growth of their British and American online businesses.
Crown Resorts reported last month about their decision to sell their majority stake in the business. William Hill showed being interested in such a deal.
Massive events are happening in the world casino industry. All this entrepreneurship is done to provide high quality gaming entertainment to all online casino players.