US opportunity gives Hill sporting chance
WILLIAM Hill shrugged off a blow to profits from a Government crackdown on fixed-odds betting terminals as it aims for a winning bet on the opening up of America’s sports betting market.
The bookmaker took $1billion (£826million) in US wagers in the first half of the year with a 27 per cent market share across seven states – after a federal ban on sports betting was overturned last year. It will soon be operating in three more states.
It plans to boost its position with the launch of a new betting platform ahead of the NFL American Football season, which with basketball are the most popular sports on which to bet.
This year, the bookie made a record $1.2million payout on a $85,000 bet for Tiger Woods to win the Masters.
Expansion across the Atlantic and reduction of a £100 stake limit to £2 on betting terminals nearly halved its pre-tax profit to £50.8million on 1 per cent higher revenue of £811.7million.
Revenue from high-street bookies was down 12 per cent, with income from the machines falling 25 per cent and sportsbook wagers up 4 per cent.
The company has already announced plans to close 700 shops, putting about 4,000 jobs at risk. Shares rose 9½p to 156¼p.
Chief executive, Philip Bowcock, said: “We continue to expand rapidly in the US, both in Nevada [where sports betting has been licensed for seven years] and in the new states.
“We are becoming a major scale player, with more than $1billion of wagering handled by William Hill US in the first half.”
William Hill last year struck a partnership deal with casino operator Eldorado Resorts and is set to expand its presence and raise earnings from a tie-up between Eldorado and the owner of Caesars Palace in LasVegas.