Back in April, analysts suggested that William Hill stock is worth a look. At the time, it had an intrinsic value of £1.63 but was trading at £1.00 on the share market. The share price is volatile, providing more opportunities to buy, given that it may dip in the future. The assessment comes from the stock’s high beta, which is usually a reliable indicator of how much it moves relative to the market.

Purchasing a stock cheaply from an established company with a robust outlook can be  a good idea. The Motley Fool added that, even though regulation posed a threat, and William Hill was closing down shops in the UK, the company was increasingly becoming a global player, with almost a quarter of its revenues coming from outside the UK.

In recent times, the US has become an exciting market for the company. With the legalization of sports betting, the opportunities in the virtual sports market, and 5G waiting to happen, management is making big moves. The William Hill market share in the USA will only grow.

William Hill Reached a Record High in September 2020

On Tuesday, September 15^th of 2020, William Hill stock price hit a record high for the year. What preceded and caused this occurrence was news that the British company had struck a multiyear deal with ESPN, in an attempt to capitalize on the forthcoming US sports betting boom. The announcement of this deal made WHM surge 9%.

The partnership specifies that the UK betting chain will become the official odds supplier for ESPN across all its platforms, including its ESPN mobile app, the ESPN Fantasy App, and its streaming service. The multiyear deal represents a continuation of ESPN’s pack with Caesars Entertainment.

Caesars had been supplying odds to the sports broadcaster for some seasons through its sportsbook. The situation changed in 2019, with their merger with Eldorado. In 2018, Eldorado gained a 20% ownership stake in William Hill, and the latter, now, took over Caesars’ sportsbook operations on the Vegas Strip as part of a merger. Before that, William Hill had one hundred locations in Nevada, many of which were kiosks inside pubs.

Following the takeover, William Hill added retail books at Paris Las Vegas, The Linq, Planet Hollywood Las Vegas, Bally’s Las Vegas, and Caesars Palace, which contains a 7,900-square-foot Race & Sportsbook inside its iconic establishment. On top of taking over Caesars Vegas sportsbook venues, William Hill manages Caesars’ properties in Iowa and New Jersey. All in all, the company should operate sportsbooks in more than 170 retail locations across thirteen states.

On the day the ESPN deal went public, fantasy sports provider DraftKings announced that it is now a co-exclusive sportsbook and exclusive daily fantasy provider for ESPN, which sent their stocks surging as well.

Estimates from Grand View Research say that the US online gambling market will grow at a compound annual growth rate of 11% in the following six years. This prompts some analysts to say that these are stocks to invest in, as the market will explode in the next decade.

William Hill  Wants to Merge With Caesars' Online Casino Business

In early September, Joe Asher, a William Hill CEO, admitted that his company is in talks with Caesars Entertainment about merging both their sports betting and online gaming businesses. Sportsbooks aside, William Hill's online casino is reviewed by industry observers as having one of the most complete gaming portfolios in the market. The caveat that their offer in the USA is limited to the retail market in Nevada for now.

The US online gambling market has a current value of almost $60 billion, but projections say that it should hit $93 billion in 2023. Playing online casino games is gaining steam around the globe, as more markets are opening up. New Jersey is the biggest in the US, but Pennsylvania is on track to expand, and Delaware is making strides. Thus, combining the two operations could generate revenue of $700m in 2021. According to Jarden Shojaian, a Wolfe Research analyst, the merger could be worth more than $7 billion if the companies merged all online businesses.

Despite the casino industry’s crisis, data from the Nevada Gaming Control Board suggests that the situation isn’t as bad as most feared. For June, Revenues were down 45.6% compared to the same month last year, with local Reno casinos reporting only a decline of 6.8%. These numbers lead analysts to believe that casinos outside of tourist destinations are doing fine, terrific news for the new Caesars since the combined company is now more exposed to local gaming venues.

On its own, Caesars is a higher-risk investment, but could also have a higher upside if results aren't as bad as feared. Seeing as land-based gambling and sports betting are struggling in 2020, while the online casino sphere is noticing a rise in popularity, this is a move that makes sense.

William Hill Moves in 2020

William Hill is actively playing the US market as it tries to expand its market share worldwide. Effective September 1st, the company finalized a deal to purchase CG Technology and further expanded on the Vegas Strip. CG is one of the largest sports operators in Nevada, active since 2009. The company was among the first to launch in-game betting and a mobile betting app. William Hill closed the deal in November of 2019, but it took until September 2020 to receive Nevada’s approval. Now, William Hill owns sportsbooks located at the Tropicana Las Vegas, Silverton Casino, the Cosmopolitan, the Venetian Resort, and the Palms.

The company also announced a heightened presence in Illinois, as it launched a mobile app in partnership with Caesars’ Grand Victoria Casino, built on a proprietary platform. William Hill also opened its first retail sports in the summer at the Grand Victoria Casino in Elgin.

In July, they launched a temporary land-based sportsbook in partnership with Monumental Sports & Entertainment, at the Capital One Arena in Washington, and according to DC Lottery’s figures, it took home $9.1m in August, outperforming the DC Lottery’s Intralot-powered app.

Proving that September has been a busy month for the company, another major shakeup happened when New York hedge fund HG Vora Capital acquired a 5.1% stake in William Hill Plc for £115 million.

How Much Is William Hill Worth?

William Hill Plc is a London-based company that trades on the London Stock Exchange and is a constituent of the FTSE 250 Index. Founded in 1934, when gambling was illegal in Britain, William Hill took advantage of a legal loop that allowed postal or telephone betting services to be operational, which do not accept cash. In 1966, Hill started to acquire real estate and opened many betting shops, since sports betting had become legal in the UK in 1961.

Over the years, the company changed numerous hands, and in 2000 and began its online casino and its internet sports betting business. In 2008, it launched a new sportsbook and partnered with iGaming giant Playtech. In 2012, it expanded to the US, opening its US branch with Nevada’s headquarters, becoming the first European operator to get a full gaming license by the Nevada Gaming Commission.

Today, the company has annual revenues of close to $2 billion, an operating income of $188 million, and 16,000 employees. WMH has 29% of the sports betting market share and operates in thirteen states. According to the last estimates, the company’s market value is around $3 billion.

If you’ve had an eye on WMH for a while, consider the track record of its management team to make a well-informed decision. William Hill’s stock was trading at GBX 121.95 in March 2020. Today, its risen by 79.2%, but there could be more growth going forward. Many analysts are saying that you should buy. James Wheatcroft, a Jefferies analyst, says that – “William Hill boasts the leading US sports betting market share, yet few see value in it.” Therefore, this is one of the best growth stocks to buy right now.

As always cavet emptor!