William Hill in Deal with Playtech

William Hill is trying to boost it sagging online casino performance.  The gaming company has announced that it has entered into a deal with Playtech.  The new gaming operation, which will include sports betting, will be 29 percent owned by Playtech.

William Hill will contribute £146 million of its affiliate businesses as well as its expertise in marketing and customer relations. William Hill will manage the new operation and have full operational control. They also retain the option to buy out Playtech’s shares in four to six years.

Both William Hill and Playtech hope to gain from the new operation. The new business will operate across Europe and funnel customers into the William Hill gaming business.  William Hill has been struggling to attract and retain customers in spite of the fact that the online gaming market has been growing. William Hill is hoping that their deal with Playtech will remedy this situation.

Playtech also has the option to buy five of the affiliates owned by Playtech founder and owner Teddy Sagi, the Israeli billionaire.  A company spokesperson says that the other affiliates will not be affected. Both companies are hoping for more healthy growth as a result of the deal.

Posted: October 20, 2008

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