2021 World Series of Poker Europe

Betfred Owners Purchase Significant Stake In Rival William Hill

William Hill

Betfred’s billionaire owners have purchased a 3.03% stake in rival bookmaker William Hill, a move analysts believe signals Betfred’s intentions to takeover William Hill’s portfolio of betting shops.

Fred Done, one of two brothers who owns Betfred, said his purchase represented great value.

“I’ve bought Hills shares because they are massively undervalued and in my opinion when it comes to the US they are front-runners,” said Done.

Done may be correct but his 3.03% stake is now worth half what it was only a couple of weeks after his purchase. Shares in William Hill traded at 129.45 pence per share the day after Done’s announcement. You can now buy the same shares for 65.96 pence per share after they tumbled on the back of awful trading results. This gives William Hill a market capitalisation, essentially a value on paper, of £577 million.

Betfred Refuses to Pay £1.72M Jackpot

Betfred is looking to expand in the United States after 14 states legalised sports betting. It has opened sportsbooks in Colorado and Iowa and recently secured an agreement with Scientific Games to launch in Pennsylvania.

The British company was also named as an official sponsor in the fight between Tyson Fury and Deontay Wilder, with the independent bookmaker’s branding featuring prominently around the MGM Grand in Las Vegas.

William Hill already has a major presence in the United States with its sportsbooks like in nine of the 14 states that enjoy legalised sports betting. Its U.S. business handled $2.9 billion worth of wagers in 2019; at least 25% of all sports betting wagers in the US went through William Hill.

The Done brothers’ purchase could have ramifications closer to home as analysts believe Betfred could make a move for William Hill’s estate of betting shops.

UKGC Orders Betfred to Pay £800K Fine

William Hill used to boasts of more than 2,000 betting shops the length and breadth of the United Kingdom. This figure has fallen to 1,568 following the closure of more than 700 betting shops. The closures happened as a direct result of the British government reducing the maximum bet of Fixed Odds Betting Terminals from £100 to only £2.

Betfred currently has approximately 1,500 betting shops in its portfolio. Should Done continue to purchase William Hill stock before launching a takeover bid or merger (as is rumoured right now), the new company’s estate would rival that of GVC Holdings.

GVC Holdings, owner of the partypoker brand, has around 3,000 betting shops thanks to acquiring the Ladbrokes and Coral brands for £3.2 billion in March 2018.

More Stories

Other Stories

Recommended for you

Betfred’s Back at the High Court Over Non-Payment of £1.72 Million Jackpot Betfred’s Back at the High Court Over Non-Payment of £1.72 Million Jackpot