The deal will see William Hill US become the exclusive partner of Eldorado for the “provision of digital and land-based sports betting services as well as online gaming” across 21 properties in 11 US states.
Pending Eldorado’s completion of its $1.85bn acquisition of Carl Icahn’s Tropicana Entertainment, the deal will extend to 26 properties in 13 states.
In return, Eldorado will receive $50m in William Hill shares, subject to an initial three-to-five-year lock-up period, and a 20% shareholding in William Hill US.
Eldorado will retain the right to convert its shareholding into shares at market value after five years, with William Hill retaining the right to settle in either shares or cash.
William Hill now has a presence in 13 US states where sports betting is either legal or where sports betting bills are currently in discussion, including Nevada, where it has been partnered with Eldorado since 2012.
Philip Bowcock, William Hill CEO, said: “Partnering with Eldorado gives William Hill access to one of the largest and most attractive casino footprints with 23 million customers across multiple states.
“This partnership provides extensive cross sell and profit growth opportunities to both parties. Together, we are positioned to capture the evolving US opportunity – starting with land-based sports betting and extending to digital sports betting and, in some states, online gaming.”
The partnership will begin “within weeks” with William Hill set to open sportsbooks in five Eldorado properties, including one in New Jersey and West Virginia, and three in Mississippi.
Gary Carano, Chairman and CEO of Eldorado, added: “We look forward to bringing the excitement of sports betting to customers across our growing platform of leading casino resorts, creating value for all shareholders.”
The completion of the deal is subject to relevant anti-trust and gaming regulatory approvals.
