Well, this is a surprise! Long-time betting operator William Hill (known profusely for their hundreds of high street betting shops) and online mobile operator behemoth 888 casino have announced their plans to join forces in a consortium deal worth £3bn — this having come after the news of William Hill's CEO got the sack last week after failing to optimize their online outlets. These two giants becoming one will have enormous repercussions on the industry and that can only be a good thing for the player.
So how has this deal come about? According to the management of both companies, this consortium is “industrial logic” which makes it an excellent opportunity to take advantage of and missing said opportunity would be a sad thing indeed.
Of course, William Hill has been hit hard by the Brexit result so their profits are going to suffer worse of all. However, in light of this consortium, they could be set to make a hell of a lot more money — 888 are a massive holding group that operate all over the internet in many countries. William Hill, although it does have an international reach on its own website, is mostly strong here in the UK.
The consortium deadline is 21st August and if William Hill want to make use of it then they will more than likely announce it beforehand. If all goes well, both companies will consort with their online and land-based operations for better promotion strategies.
What This Means
Because a third William Hill's business takes place online, the decline in their online customer base has proven a devastating blow. And with less profit coming in, the less wonderful opportunities they'll be able to off you, the player, and the less they'll be able to spend expanding their online operations (that means no more new slots, table games or sports betting).
Now that they have agree on this deal with 888, this will guarantee a better online presence and profits which could work up to making it half of William Hill's business.
Curiously, it was only a year ago when William Hill bid over £700m to buy 888 outright, however this proved unsuccessful. This consortium appears to be the next best thing to a full-on merge or buy-off and pits them against other merged giants such as Ladbrokes and Gala Coral. Only time will tell if the two online betting companies will butt heads.