William Hill Raises £224 in in Share Scheme as it Prepares for US Launch
by Glenn Baird - June 17, 2020
William Hill has raised somewhere in the region of £224m after launching a new ordinary share placement for 19.99 per cent of its existing share capital.
The operator has stated that this money will give them the collateral needed to further expand into the US market.
Despite the shut down of betting shops across the globe, William Hill has operating a drive-through service in Nevada, a state in which you must sin up in person to gamble online.
With online gambling set to launch in New Jersey, Willian Hill are readying themselves to enter into that market too.
CEO Ulrik Bengtsson had this to say: “The return of sporting events has driven a strong recovery in our online volumes,” he said. “Our UK Online business is in a better place than ever and our international business is displaying solid growth.”
“In the US we have used this period of lockdown wisely to move our product forward and we are now in a strong position to capitalise on the US growth opportunity that lies ahead.”
Bengtsson continued: “We also have significant experience in running our own sports trading platform, giving us a strong understanding of customer behaviour, acquisition costs and margins. Our history in Nevada of 24 per cent CAGR over the last eight years with an operating margin of more than 30 per cent in 2019 is testament to our expertise.
“We expect the number of states licencing sports betting in the US to increase over the next 12-18 months. We will continue to build on our national leadership position with the further roll out of our new proprietary platform, in which we continued investment during this time, and which now offers a compelling user experience with efficient adaptation to the unique requirements of each new state, enabling faster and lower cost market entry. These enhanced technology solutions will provide the US business with the strongest foundations for continued success.
“To do this, we will increase investment behind product, technology, new state start-ups and marketing. This is a crucial and exciting phase for us in the US, and the proceeds from the Placing will give us the flexibility to support and accelerate our roll-out strategy as opportunities emerge.”