June 11, 2012

William Hill clear hurdle to get 3 sportsbooks in Nevada

William Hill on Thursday received preliminary approval from the state Gaming Control Board to buy three Nevada race and sports book operations in a $55 million deal.

William Hill will acquire American Wagering, the parent for Leroy’s Horse and Sports Place, Brandywine Bookmaking and the race and sports book at the Cal Neva Lodge in Reno.

The new owners said they do not intend to close any of the locations and plan to spend $3 million in improvements before the pro football season starts.

Norman Topping, chief executive officer, said the company accepts 1 million wagers a day. The median wager is $5, he said. It has online betting operations in a number of countries outside the United Kingdom.

However, Board members questioned Topping and others about online betting in Australia, where it is illegal for residents to place wagers. But company officials said operations there were halted.

Board Chairman Mark Lipparelli and member A.G. Burnett were unhappy that William Hill did not check out the local law before entering the market.

Lipparelli said William Hill was a “sophisticated and well-run” company. But he said the company has a policy of “open market to the world” without due diligence in checking the local laws.

Burnett said there are “several unknowns” about Playtech, whom have a 29% stake in William Hill and if that firm is found unsuitable by Nevada, William Hill “will have to take care of that,” apparently meaning a buyout.

William Hill executives said they have an option to buy out Playtech this year and next.

The application goes before the Nevada Gaming Commission for final action June 21 in Las Vegas.

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