➤ Legalized sports betting could be in 25 states by 2024, generating $10 billion in revenues for operators.
➤ The company is assessing opportunities at venues in Chicago.
With roots dating back to 1934 in the U.K., sports betting and gaming services provider William Hill PLC crossed The Pond and set up shop in Las Vegas in 2012. Since the Supreme Court struck down a law in May 2018 that had limited sports betting to Nevada, William Hill US has expanded its presence to 10 states, including running sports books and online wagering in New Jersey and Iowa, and has partnership deals with the NBA and NHL.
Through a pact with Ted Leonsis' Monumental Sports & Entertainment LLC , which owns the NHL Washington Capitals, NBA Wizards and Capital One Arena in the District of Columbia, William Hill US is slated to become the first company to run a sports betting operation within a professional sports venue in this country. S&P Global Market Intelligence recently caught up with the company's U.S. CEO Joe Asher to discuss the burgeoning U.S. sports betting industry and the Monumental deal.
Below is an edited version of that conversation.
S&P Global Market Intelligence: How many states will offer legalized sports betting over the next few years?
Joe Asher:
Joe Asher, William Hill US CEO Source: William Hill |
How big of an industry can legalized sports betting become in the U.S.?
It depends on the number of states and what kind of operations are in place. There is sports betting in four casinos and three with Indian tribes in New York state, but none in New York City. There isn’t any mobile betting in New York. A lot of people are driving across the George Washington Bridge or through the Lincoln Tunnel to go to New Jersey.
Is mobile key to expand the business?
We have 113 locations in Nevada, but people would be surprised to know that 70% of the action comes from our mobile app. We’re big believers in the confluence of retail and mobile. Sports betting could be a $10 billion revenue industry by 2024-25.
That’s not the amount that people will be bet?
No. In Nevada last year, there was $5 billion in sports betting, but that comes down to about $250 million in revenue [for the sports books operators].
William Hill US is the exclusive sports betting and online gaming partner of Eldorado Resorts LLC,
We signed our deal with Eldorado a year ago. We didn’t know it would be Caesars per se, but we knew Eldorado was in an acquisitive mode. We will become the sports books in Caesar properties. The deal is expected to close in the first half of 2020. From what we hear, it’s closer to January than June.
Monumental won’t share in the revenue?
That’s right. We’re leasing the space.
When you will be up and running?
Sometime in 2020. There are licensing approvals and then construction permits. This is very important to us. We want to do this in a first-class way, make sure we get it right by complying with all the regulations. I can’t say at this point whether that’s in January or December.
The sports betting legislation in Washington, D.C., will also allow for sports books to be licensed in Nationals Park (home to MLB’s Nationals), Audi Field (MLS’ D.C. United) and St. Elizabeths East Entertainment and Sports Arena (the WNBA Mystics, also part of the Monumental portfolio). Can you work in these other venues?
There is nothing in our deal that precludes us. But our focus is on Capital One Arena, clearly the trophy property in the market. It has some 220 events and sits atop Gallery Place, a very busy rail stop.
Monumental is talking about opening up the arena’s bowl on non-event days, so fans can watch other big games. People will be able to use your app inside the arena. What is the opportunity at Capital One Arena?
Our plan is to be open 365 days a year from early morning to late at night. When fans come to watch the Wizards or the Capitals play, we hope they stick around for a couple of drinks after and maybe take in a little action on the West Coast games.
Will William Hill and other sports betting operators have a presence at many stadiums and arenas around the country?
It depends on what the states legislate. Right now, Illinois allows for it and there will be sports books at Wrigley Field (MLB’s Chicago Cubs), Comiskey Park (MLB’s White Sox) and the United Center (the NBA Bulls and NHL Blackhawks).

