Casino operator Caesars Entertainment is in talks to buy William Hill for $3.7 billion. William Hill is a London based bookmaker which has seen its shares surge over 400% thanks to optimism surrounding its online business and a potential deal with Caesars.
After the US Supreme court legalized sports gambling in states outside of Nevada in 2018, the industry has been growing rapidly. While lockdowns did result in the cancellation of most major sports events, pent up demand has helped gaming operations hit the ground running. The American Gaming Association expects nearly 35 million people, or 13% of American adults will bet on the NFL this season.
The $3.7 billion price tag represents a valuation of $3.45 per William Hill share, an 81% premium to the stock's average price over three months.