US-based casino giant Caesars Entertainment is reportedly in talks to buy British booker William Hill’s sport betting business in the country. The deal will see the US-arm of William Hill valued at $3.7 billion.

A big opportunity

The deal comes at a time when the US sports betting industry is in its initial stages and showing great promise of growth. Releasing a joint statement on Monday, the companies that the US casino giant is paying an 81% premium on the average price of the stock over the three months ending September 24. The deal will give Caesars full control of their joint venture business in the US.

William Hill has already created a strong footprint on American soil. It already holds a 32% share of the Nevada sports betting market share and is expanding into other states rapidly. Tom Reeg, the CEO of Caesars said that the prospects of combining their land-based, online gaming, and sports betting business are exciting. He added,

“William Hill’s sports betting expertise will complement Caesars’ current offering, enabling the combined group to better serve our customers in the fast-growing US sports betting and online market.”

Carrying over the pre-pandemic high

In 2018, the US Supreme Court struck down PASPA, an act that stopped states from forming their own legalized sports betting markets, excepting Nevada. Since then, several states have launched their own sports betting legalizations and created a new valuable source of revenue as well. The coronavirus pandemic paused the industry’s activities but it’s still on the road to becoming quickly expand its reach in most US states.

The growth scope for the industry has made DraftKings and Flutter Entertainment witness increased activity and buoying prices of their stocks. According to the American Gaming Association, about 35 million people, or 13% of the American adult population is expected to bet on NFL in the upcoming season. Caesars said in its statement that it identified online gaming and sports betting as the largest areas of growth in the American gaming industry. Their chief analysts view it as a $35 billion market.