William Hill PLC (LON:WMH) today confirmed it is in talks about a potential merger between rival CrownBet and its Australian division.
The bookmaker said it was in “very preliminary discussions” with the online wagering business but there was “no certainty” that this will lead to a deal. In late afternoon trading, William Hill shares were 1% lower at 281p.
Crown Resorts confirms it is having discussions regarding CrownBet
Australian casino operator Crown Resorts, which has a 62% stake in CrownBet, had earlier announced that it was in discussions over the holding.
"Crown evaluates opportunities regarding its investments from time to time," the firm said in a statement.
"Crown confirms that it is in discussions concerning its interest in CrownBet. There is no certainty as to whether any transaction will eventuate."
READ: William Hill on track to meet full year market forecasts but regulatory challenges loom
On Monday, William Hill had said it was on track to meet full year market expectations as it reported a 3% increase in retail net revenue in the 17 weeks to October 24.
The Australian division, however, saw revenue fall 2% over the period as the amount wagered dropped 5% against “challenging” market conditions.
Australian division faces ban on offering lines of credit
The business also faces a ban on online gambling sites operating in Australia from offering lines of credit under new reforms to take effect in February 2018.
“With the credit betting ban now passed by the Australian Government and the potential for a Point of Consumption Tax to be adopted by other states, we continue to manage spend carefully while extending and diversifying our product range,” William Hill said in its Monday trading update.
Meanwhile, Reuters also reported that Ireland-based, FTSE 100 listed betting group Paddy Power Betfair PLC (LON:PPB) is in talks to buy Australia's CrownBet, according to sources. Paddy Power Betfair operates in Australia through its Sportsbet business. Shares in Paddy Power were up 3.5% at 8.835
-- Adds reported Paddy Power Betfair interest, share prices --