William Hill signed an agreement with the American casino group Eldorado, which led to a price increase of more than 6 percent for the bookmaker.
Stricter regulation of the gambling sector in the United Kingdom and a milestone in the industry that liberalizes US industry means that British gambling companies are continuing to speed up expansion plans across the pond.
William Hill said the deal gives it access to one of the largest and most attractive & # 39; casino chains, with Eldorado with 23 million customers in the US.
It is an appointment: betting giant William Hill has signed a deal with the American casino group Eldorado
The share price of William Hill increased by 6.22 percent or 15.75p in the morning trade to 263.95p.
Under the terms of the deal, Eldorado will receive £ 39 million in William Hill shares, subject to a lock-in period of up to five years and a 20 percent stake in the US operations of the UK betting office.
Since the American sports betting sector was liberalized earlier this year, William Hill claims to have reached the widest footprint of any sports betting provider in the US.
Philip Bowcock, chief executive of William Hill, said: & # 39; This collaboration offers extensive cross-sell and profit growth opportunities for both parties.
Together we are able to capture the evolving opportunities in the US – starting with sports betting on the mainland and extending to digital sports betting and, in some states, online gaming. & # 39;
Expansion: William Hill said the deal gives it access to one of the largest and most attractive & # 39; casino chains
William Hill US has assets worth £ 53.4million and made an underlying result of £ 22.2million last year.
An analyst at AJ Bell said: UK gambling companies do not waste time increasing their position in the US after a major development earlier this year to legalize the US sports betting market.
& # 39; William Hill's new partnership with Eldorado Resorts is perfectly logical as a clamp exercise. Through a link with the casino group, it gains access to 13 states with a view to launching William Hill sportsbooks in a number of these states within a few weeks. Further down the line it is in an excellent position to take advantage, as further states allow sports betting.
William Hill needs the US to be successful because its UK operations continue to face increasing legal pressures. His London rival GVC also has similar ambitions to the pond after he recently signed a partnership with casino group MGM Resorts. & # 39;
Ian Forrest, an investment research analyst at The Share Center, said: "William Hill has had some success in the US, but the shares have been hit by the outcome of the Triennale review by the UK government maximum bet on fixed odds has drastically reduced gambling terminals in Britain.
The company believes the gaming revenue will fall by 35-45% and the operating profit by £ 70m-100m, so the shares will not be better than a hold. & # 39;
In July, the owner of Ladbrokes and Coral, GVC Holdings, has secured a £ 152 million seizure at the world's largest casino operator, MGM Resorts.