William Hill to enter U.S. with $39 million deal

[dave nz]

(Reuters) - William Hill, Britain's biggest Bookmaker, will move into the U.S. gaming market for the first time after agreeing to buy two American sports betting businesses for $39 million.

William Hill, which has around 2,300 betting shops in Britain and Ireland, said it would pay $18 million in cash for Nevada-based American Wagering Inc (AWI) and $21 million for the Cal Neva sportsbook division, which is a part of the Sierra Development Company.

"These acquisitions mark William Hill's entry into the strategically important US market, taking a leading position in sports-betting," William Hill's Chief Executive Ralph Topping said in a statement.

"We see significant opportunities for growth by investing in Nevada and arising from the combination of these businesses."

AWI and Cal Neva operate sportsbooks in casinos and taverns throughout Nevada. AWI also supplies sportsbook technology to larger casino groups who manage their own sportsbooks.

In the U.S., sports-betting is legal under federal law in Nevada, Delaware, Montana and Oregon, though Nevada is the most significant and had an estimated turnover of $2.7 billion in 2010, according to the British company.

William Hill said before completing the acquisitions, the company and some of its senior managers would have to be licensed by the Nevada Gaming Commission.

Shares in William Hill, which have risen 8 percent in the last three months, were flat at 185.65 pence by 1230 GMT, valuing the group at around 1.3 billion pounds ($2.12 billion).