The deal includes the leases of sports betting facilities at some of the premier Las Vegas Strip hotel and casino resorts.

William Hill’s US division currently operates 113 of Nevada’s approximately 200 sportsbooks. However, the major sports betting operator lacked significant presence on the Strip. The acquisition of CG Technology’s assets will more than enhance William Hill’s footprint in that key gambling hub.

William Hill’s Strip Expansion

Financial and other terms of the deal were not disclosed. The transaction is subject to regulatory approval in Nevada and the Bahamas and the satisfaction of other closing conditions, and is expected to close sometime in the first half of 2020.

The deal includes the sportsbook leases of The Cosmopolitan of Las Vegas, The Venetian, The Palazzo, the Palms, Tropicana, and Silverton as well as of Atlantis Resort on Paradise Island.

Commenting on the addition of new sportsbooks to their already hefty portfolio, William Hill US CEO Joe Asher said that the deal would allow them to expand their Vegas footprint to “several marquee resorts” and that they “look forward to working with our new casino partners and transitioning CG Technology’s retail and mobile customers to our award-winning offering.”

Parikshat Khanna, CEO of CG Technology, added that they are looking forward to “a seamless transition for our loyal casino partners and customers.”

The acquisition of CG Technology’s sportsbooks will help William Hill further deliver on its strategy to rank among the leaders in the US regulated sports betting space. As mentioned above, the company has already cemented itself as the market leader in Nevada.

Its partnership with Reno-based casino operator Eldorado Resorts has enabled the company to expand across other states where sports betting has become legal since May 2018 when the US Supreme Court struck down the long-standing federal ban on athletic gambling.

In addition, through its deal with Eldorado, William Hill is also poised to soon gain access to properties operated by Caesars Entertainment Corp. Eldorado and Caesars have agreed to merge earlier this year. Their combination is expected to close sometime in 2020, pending regulatory approval.

William Hill’s US sports betting expansion aims to mitigate the ill effects of growing regulatory pressure in the UK. A recent retail crackdown in the bookmaker’s homeland forced it to close 700 betting shops this year, which prompted a decline in its UK revenue. The revenue drop was offset by the company’s US expansion and online performance.

According to William Hill’s latest trading update, the company’s revenue increased 1% in the 17 weeks to October 29, 2019.

Deal Marks CG Technology’s End

According to industry experts, CG Technology’s decision to sell its sportsbook assets might have been prompted by the company’s notoriety, which it built around serious violations of Nevada regulations on several occasions over the past five years.

The Nevada Gaming Commission fined CG Technology $8.8 million between 2014 and 2018 over three instances of regulatory violations. The above amount includes the second-highest penalty imposed by the regulator, $5.5 million that the company paid to settle illegal gambling and money laundering charges.

In November 2018, the CG Technology barely eluded revocation of its Nevada license. The company offered to pay $2 million to settle compliance failures. The Nevada Gaming Commission accepted that offer and decided not to banish the operator from the Silver State.

Brendan Bussmann, a partner at Global Market Advisors, told the Las Vegas Review-Journal that CG Technology may have decided to sell its assets namely due to its previous regulatory issues. Mr. Bussmann noted that those “continued to be out there as a potential liability” and that “people sometimes don’t forget things” even if a company is under new management.