William Hill licensed by Nevada gaming commision
William Hill PLC (LSE: WMH) (William Hill or the Group), the UK’s largest bookmaker, announces that the Group and certain of its senior managers were unanimously granted non-restricted gaming licences by the Nevada Gaming Commission at a meeting held in Las Vegas on 21 June 2012. A non-restricted licence is the highest tier of licence in Nevada.
Accordingly, completion of the previously announced impending acquisitions of American Wagering, Inc. (AWI) (OTC:BB: BETM), Brandywine Bookmaking LLC (Brandywine) and the racing and sportsbook assets of Sierra Developments, trading as Cal Neva, is now expected to occur on 27 June 2012 for consideration of approximately $49m (£31m) in total. This amount includes $4m (£2.5m) for the settlement of debt and preference shares. In addition to this consideration, the Group advanced $6.4m (£4.1m) in arm’s-length convertible loans to AWI and Brandywine prior to acquisition. Integration will take place during the summer.
The acquisitions will be funded in cash and are expected to be marginally earnings enhancing (before exceptional transaction and integration costs and the amortisation of intangible assets associated with these acquisitions) in 2013. The Group expects to incur $8m (£5.1m) of exceptional transaction and integration costs over 2011 and 2012 in respect of these acquisitions.
Ralph Topping, Chief Executive of William Hill, said: “We are delighted to have been awarded our licence to operate in the State of Nevada. This now enables us to establish William Hill’s first ever US operation, an important part of our international growth strategy. We will now bring together these three businesses to create a leading position in the Nevada sports betting market, combining our brand and product range with AWI’s, Brandywine’s and Cal Neva’s extensive Nevada footprint, strong local relationships and trusted service. We look forward to working with our new colleagues to grow a leadership position in the Nevada sports betting industry and beyond.”
William Hill will provide further information on these acquisitions and its integration plans as part of its interim results on Friday, 27 July 2012.
William Hill PLC
Ralph Topping, Chief Executive
Neil Cooper, Group Finance Director
Lyndsay Wright, Director of Investor Relations
Tel: +44 (0) 20 8918 3614
Simon Sporborg / Sophie Brand / Oliver Hughes
Tel: 020 7404 5959
About William Hill PLC
William Hill, The Home of Betting, is one of the world’s leading betting and gaming companies, employing more than 15,000 people. Founded in 1934, it is now the UK’s largest bookmaker with over 2,370 licensed betting offices that provide betting opportunities on a wide range of sporting and nonsporting events, gaming on machines and numbers-based products including lotteries. William Hill Online (www.williamhill.com) is one of Europe’s leading online betting and gaming businesses, providing customers with the opportunity to access William Hill’s products online, through their mobile, by telephone and by text services. William Hill PLC is listed on the London Stock Exchange and generates revenues of over £1bn a year.
About AWI, Brandywine and Cal Neva
AWI is the longest-standing sportsbook operator in the State of Nevada having been established through the Leroy’s brand in 1978. Its proprietary technology platform is currently licensed by major casino operators in Nevada. William Hill is acquiring AWI for $0.90 per share.
Brandywine, which is privately owned, operates sportsbooks across Nevada. It is also the exclusive risk manager for the Delaware Sports Lottery, which it operates in partnership with Scientific Games, and for the Marriott in St Kitts in partnership with Sportech.
The Cal Neva Sportsbook Division is part of the Sierra Development Company, a privately owned casino and hotel business. Established in 1989, it operates sportsbooks in Nevada.