William Hill granted Nevada gaming licence
CEO Ralph Topping says it is a "privilege" to be first UK company to be licensed in the US.
William Hill has been awarded a licence to operate in Nevada after the state’s Gaming Commission unamimously supported its application at a hearing in Las Vegas today.
The operator has been waiting for approval in the Silver State ever since it agreed to spend US$55m on deals to acquire three Nevada-facing sportsbooks last year. The acquisitions were dependent on it obtaining a licence.
Speaking to eGaming Review last night, Hills’ CEO Ralph Topping (pictured), said getting the licence had been a “long process”. “I started filling in the forms on the day of the Royal Wedding – I started at 7am and finished at 11pm. It is a privilege to be the first UK business licence in the US.”
Approval will see Hills create a Nevada-based subsidiary William Hill U.S. Holdco Inc., under which land-based, online and mobile operations will be consolidated.
Topping said there was “potential” to join the likes of IGT and Bally in applying for an online poker licence in Nevada, but that “will take time”.
William Hill made its first foray into the US market when it agreed to buy American Wagering Inc (AW) for US$18m in April last year. AW operates 72 sportsbooks and kiosks under the Leroy’s brand. The following month saw Hills agree a deal to acquire Nevada and Delaware-based sports betting company Brandywine for $14.25m. The bookmaker also agreed to pay $21m to casino and hotel group Sierra Development Company for the Cal Neva Sportsbook Division which runs 31 sportsbooks in the Silver State.
The newly-formed board of William Hill US will see Vic Salerno of American Wagering appointed as chairman. Brandywine Bookmaking’s Joe Asher takes the role as CEO of William Hill US, with Club Cal Neva’s Jeff Siri becoming chief operating officer.
Topping said William Hill US will be a “good standalone business” and is a “good platform for business in the rest of the country”. Topping also added that William Hill had been contacted for other legal betting opportunities in the US over the last nine months, however these have been on hold until now and it intends to “look at developing the business in other ways”.
He did, however, dismiss the idea of US acquiring bricks and mortar casino business. “We don’t see ourselves becoming casino operators, Steve Wynn can sleep easily at night,” he said.
Hills’ application had been hindered by the GCB’s extensive investigations into its joint venture (JV) with Israeli gaming supplier Playtech, along with probes into associated personnel including head of strategy and corporate development Robin Chhabra.
Tweeting live from the hearing, Las Vegas Sun journalist Chris Sieroty reported that Nevada Gaming Commissioner Tony Alamo said he needed more information about Hills’ involvement with Playtech to be “comfortable” about the deal. According to Cardplayer, Alamo said that based on current information, he doesn’t have a “warm and fuzzy” feeling and that “there are too many holes” surrounding the JV.
However Topping told eGR the JV with Playtech had nothing to do with the licensing process. “We were advised it would take 18 months, so it has bee bang in line with that prediction; in fact it has taken less than this.”
Referring to the long-term future of the JV, Topping said a decision would be made in September: “On both sides we are reviewing it; we are seeing what works with each organisation going forward. The talks have been useful and conducted in a productive way, between the chairmen and chief executives of both companies.”
Since the news broke of Hills obtaining a Nevada gaming licence, its share price has risen just 0.2p.