“The retail group Sears bought the bookie back in 1971, as part of a diversification plan, and the UK’s second-biggest High Street operator by number of shops has since been acquired by Grand Metropolitan, when it merged with the rival Mecca Bookmakers organisation (1988), Brent Walker (1989), Nomura (1997) and finally a private equity consortium (1999).
Source: The Gambling Commission
“William Hill then floated on the stock market in 2002. Its first spell as a member of the FTSE 100 lasted from 2004-05 and its last stint in the UK’s corporate top flight ended with demotion in 2014.
“Since then, the company has unsuccessfully tried to buy 888 and also had to fend off two approaches
“Canada’s Stars Group tried and failed to merger with William Hill back in 2016, ultimately contenting itself with the purchase of Hill’s Australian business back in March, after a joint bid from Rank and 888 also came to grief.
“A series of profit warnings, prompted by operational miscues with its online business, where Hills had failed to keep up with the times, led to the departure of chief executive James Henderson and left the firm open top attack.
“Mr Henderson’s successor, Philip Bowcock, seems to have steadied the ship, even if Hills’ 2017 results were marred by a write-down on its Aussie business, which has since been sold.
“Revenues are growing, the Australian problems have been dealt with, the Fixed Odds Betting Terminals (FOBTs) review looks like it will end with the worst-case for the bookies being avoided and Mr Bowcock has appointed Ulrik Bengtsson as the firm’s new chief digital officer.
“In addition, Hills has a terrific foothold in the USA, helped by a trio of acquisitions it made in 2011. If the US Supreme Court decides to open up and legalise sports betting in the USA then William Hill could find itself in pole position. The firm is already the leading regulated player in Nevada and it could look to build on that, if sports betting is legalised, as many expect.
“A cut in FOBT stakes could hit near-term earnings but the High Street business should remain cash generative – just at the weekend at 33-1 shot won the Coral-sponsored Scottish Grand National at Ayr, the fourth-biggest betting race of the whole year according to data from the Horserace Betting Levy Board, to remind people of just why so many individuals and firms still want a piece of the betting market action.
“After all, Cyril Stein famously decided he wanted in when he was taken to a Ladbrokes shop in London and noticed there were three counters in the shop which said ‘bet here’ and only one that said ‘pay out.’
“The internet, smart phones and changes in tax legislation may mean the route to customers is now different, but the principle stays the same and the annual gross yield in the UK betting business is £13.8 billion, according to Gambling Commission statistics, of which some £8 billion goes to the bookmakers.
Source: Company accounts
“If any trade buyer does fancy a flutter by buying Hills now may be their chance, before Mr Bowcock’s turnaround plan really gathers momentum, the online business starts to click and the US betting rules are changed. Hills already generates 43% of its net revenues online and 18% from overseas.”
APPENDIX: BRITISH BOOKMAKING: MAJOR EVENTS TIMELINE – LAST 20 YEARS
1998
Ladbrokes buys Coral from Bass but is forced to sell it by the Monopolies and Mergers Commission
1999
After a management buy-out, Coral merges with Eurobet
BetFred buys Demmy Racing
Victor Chandler moves its HQ to Gibraltar, having obtained a licence there in 1996
2000
Bet365 begins trading
Betfair begins trading
Betandwin floats on the Vienna stock exchange, three years after its launch
2001
SkyBet begins trading
2002
William Hill floats on the London Stock Exchange
888 Holdings is established
2003
Candover-Cinven private equity consortium buys Gala
2004
GVC lists on London’s AIM market
Done Bookmakers renames itself Betfred
2005
Gala buys Coral-Eurobet
William Hill buys Stanley Leisure
PartyGaming floats on the London Stock Exchange, eight years after its launch
2006
Betandwin changes its name to bwin
2007
Stan James acquires Betdirect from 32Red
2008
Stan James acquires Betterbet
2010
Betfair floats on the London Stock Exchange
2011
Betfred buys the Tote (and a seven-year exclusive licence for pool betting)
William Hill buys American Wagering and two other US businesses
Bwin Interactive mergers with PartyGaming
2012
Rank acquires Gala Coral’s casinos
William Hill and GVC jointly acquire and break up Sportingbet
2014
BetVictor is acquired by Michael Tabor
Sky sells a stake in SkyBet to CVC
2015
Unibet (Kindred) buys Stan James’ online business
William Hill makes an unsuccessful bid for 888
2016
Ladbrokes mergers with Gala-Coral to form Ladbrokes-Coral
Paddy Power merges with Betfair
GVC acquires bwin.party
888 and Rank make a failed bid for William Hill
Amaya makes a failed bid for William Hill
2017
Kindred acquired 32Red
2018
GVC acquires Ladbrokes-Coral
Stars Group acquires SkyBet