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William Hill confirms US tie-up with Eldorado

William Hill has confirmed it is forging a partnership with US casino group Eldorado Resorts, as previously reported by Sky News.
Under the terms of the agreement, William Hill becomes Eldorado's exclusive partner in the provision of digital and land-based sports betting services as well as online gaming.
With the tie-up, William Hill's reach across the US will now extend to 13 states where sports betting is either legal or sports betting bills have been tabled, along with any new properties that Eldorado buys or develops.Nasdaq-traded company Eldorado currently has 21 casino properties across 11 states, with 23 million customers.The partnership will see William Hill bookmakers opened in five properties across three states "within weeks," with additional openings in casinos as well as digital betting and gaming services to be launched in the months ahead, subject to the legislation in each state.The capital expenditure will be split evenly between the companies.William Hill's move to further diversify into the US betting market will help alleviate some of the pressure the UK bookmaker faces on the home front, where stringent regulations and an industry-wide shift towards online gaming are posing challenges.According to the terms of the deal, Eldorado will receive $50m (€38.9m) of William Hill stock, subject to a lock-up period of three to five years.
As reported by Sky News, Eldorado will also take a 20% stake in William Hill's US operations and the agreement is for an initial 25-year term.William Hill shares rose 4.8% in Wednesday trading.Philip Bowcock, William Hill's chief executive, said: "Partnering with Eldorado gives William Hill access to one of the largest and most attractive casino footprints with 23 million customers across multiple states."This partnership provides extensive cross sell and profit growth opportunities to both parties."Together, we are positioned to capture the evolving US opportunity - starting with land-based sports betting and extending to digital sports betting and, in some states, online gaming."
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Eldorado's chairman and CEO Gary Carano added: "Having worked with the company since 2012, we believe William Hill represents the gold standard in global sports betting and we are confident that our expanded partnership will be successful."We look forward to bringing the excitement of sports betting to customers across our growing platform of leading casino resorts, creating value for all shareholders."
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