William Hill Acquires 29.4% Of Online Lottery Provider NeoGames
William Hill have made a significant investment in online lottery with their partial acquisition of lottery and platform provider NeoGames. In terms of the deal William ill have acquired 29.4% of the Luxembourg-based NeoGames for a total cash consideration of $25m. Founded in 2005 NeoGames is considered a pioneer in the online scratch card business and has developed an online lottery offering and platform for global lotteries. They have focused heavily in the US as they boast the highest per capita spend in the world with over $60 billion spent in 2014. Currently four US states offer online lotteries with more expected to follow. NeoGames were awarded the joint contract for the Michigan iLottery.
William Hill will have the option of acquiring the remaining 70.6% of NeoGames after three or five years. The price payable will be determined by a valuation methodology calculated at the initial stake purchase.
CEO of William Hill, James Henderson commented on the deal,” The emergent online Lottery market is an exciting new opportunity in the gambling sector and NeoGames is a disruptive technology operator offering customers a great experience and lottery rights holders a compelling alternative to established retail lottery operators. This agreement gives William Hill good optionality in a new market that is increasingly attractive to gambling customers.”
CEO of NeoGames, Ilan Rosen was equally delighted at the deal,” We are excited by this strategic investment and partnership with William Hill which, apart from being a strong vote of confidence in our company and future expansion plans by one of the leading players in the gambling world, also opens up promising areas for synergies between our companies in the online lottery market, bringing William Hill’s expertise and excellence in areas such as sports betting and omni-channel growth.”