Online betting firm 888 'in advanced talks' to buy non-US business of William Hill

888 Holdings beat off rival bids from private equity with an estimated bid worth more than €2.3bn

US casino giant Caesars bought William Hill’s US operations in April and wants to sell its international assets to pay down $2bn in debt. File picture

Online gambling company 888 Holdings has said it is in advanced talks to buy rival William Hill’s non-US operations after beating off rival bids from private equity.

The discussions with William Hill’s owner, Caesars Entertainment, are not certain to result in a takeover by 888. It had been reported that 888 had won the auction with an estimated bid worth more than £2bn (€2.3bn).

US casino giant Caesars bought William Hill’s US operations in April and wants to sell its international assets to pay down $2bn in debt. A deal would give 888 extra scale to capitalise on a surge in demand for digital gaming during the pandemic.

Highest bid

888 had submitted the highest bid as it competed with private equity firms for the business. It was vying with Apollo Global Management after CVC Capital Partners, the owner of sports betting firm Tipico, dropped out of the bidding.

888 chief executive Itai Pazner said in March the company would consider joining up with European operators. Coronavirus measures have given him a stronger hand as lockdowns boosted demand for online gambling and 888 shares more than doubled in a the past year.

888 already tried to buy William Hill in 2016 in tandem with Rank Group.

Online gambling could be worth $117bn by 2025.

• Bloomberg