Caesars is in advanced talks to buy William Hill in a deal that would value the British bookmaker at 2.9 billion pounds ($3.7 billion) and give the casino operator control of a quickly expanding U.S. sports betting and online gaming business. ceasars online gaming

Caesars was considering offering 272 pence per share and William Hill’s board was inclined to recommend such an offer to shareholders, the companies said on Monday.

William Hill shares on Friday surged to a two-year high above 312 pence after it said it had received separate offers from Caesars and buyout group Apollo.

They were last at 275 pence, suggesting that even if Apollo counters, investors now expect the price to be far lower.

Caesars, which first approached William Hill on Sept. 1, said its offer price included an almost 60% premium over the company’s share price that day and highlighted the risk of taking on a U.S. business still in its infancy.

The company said it intends to find suitable partners or owners for William Hill’s non-U.S. businesses, including more than 1,500 UK betting shops.

Caesars could strike a separate deal to flip the UK assets to Apollo, two sources familiar with the matter said, or if that failed, launch an auction process targeting both financial and corporate bidders.

Apollo declined to comment. ceasars online gaming

Caesars said the enlarged sports and online gaming business in the U.S. could generate between $600-$700 million in net revenue in FY2021.

The offer comes soon after Eldorado Resorts completed buying bigger rival Caesars for about $8.5 billion, creating a new competitor for larger sector players like Las Vegas Sands and Wynn Resorts. (via Skift)

Caesars Entertainment, Inc. is the largest casino entertainment company in the U.S. and one of the world’s most diversified casino-entertainment providers. Since its beginning in Reno, Nevada, in 1937, Caesars Entertainment has grown through the development of new resorts, expansions and acquisitions. Caesars Entertainment’s resorts operate primarily under the Caesars®, Harrah’s®, Horseshoe® and Eldorado® brand names. Caesars Entertainment offers diversified amenities and one-of-a-kind destinations, with a focus on building loyalty and value with its guests through a unique combination of impeccable service, operational excellence and technology leadership.