Caesars Getting Serious About Online Gambling
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Caesars Resorts is considering buying its online gambling partner William Hill. Online gambling is the hottest segment of the international gambling market. DraftKings, EveriHoldings, GAN Limited, and PennNational Gaming are already big players in the market, but traditional gambling industry may still have some tricks up its sleeve.
Caesars and Apollo have submitted cash offers to acquire William Hill. The gambling company has a $2.9 billion market cap. Caesar's isn't very cash-rich after the merger between Eldorado Resorts and the old Caeresars Entertainment.
There are only 14 states that have legalized online gambling today. New Jersey is the most mature online betting market. The revenue is relatively small today and new states have been slow to sign on. It's not clear how long it will take to be legalized nationwide. William Hill would need to buy a national business to justify a multibillion-dollar buyout.
There is a lot of competition in the online gambling industry. Caesars is valuable because of its locations in Las Vegas. If there are a dozen online casinos in states, the market opportunity will be limited.
Caesars has invested billions in the online gambling business. It could have built its own online betting platform, but it chose to partner with William Hill instead.
