HomeInsights & AdviceFSB offices relocating due to vacancy left by US-oriented bookmaker William Hill

FSB offices relocating due to vacancy left by US-oriented bookmaker William Hill

by John Saunders
26th Sep 18 8:18 am
One of the leading corporations in the area of iGaming and similar software product development and supply, FSB, is set to take up offices in downtown London, formerly occupied by bookmaking giant William Hill. Following successful deals and positive projections for the future quarters, FSB is looking to make the most of the recent vacancy which had come up in Shoreditch, on Scrutton St. to be exact.

The company is planning…

…. on occupying two stories of the commercial property, and transfer their team of practically one hundred personnel members along with the complete scope of operations. Considering the former occupants’ established dominance in the sports betting sphere during their stay on the premises, FSB is looking to make a lasting tradition of it, as a portion of the office space is bound to be repurposed into a fully fledged betting shop with terminals and everything in between.
There is no shortage of enthusiasm, as the Business Development Director, Richard Thorp identifies the move as ‘a hugely salient step in the [company’s] evolution and ambitions’.

He continues further on, stating:

‘the move demonstrates our commitment to building on our stable base by innovating and staying ahead of the market trends for our partners. It’s an exceptional building with a strong trading tradition in an area of growing appeal. It’s a happy coincidence when location and vocation converge. We all can’t wait to get the keys to the property.’

Speaking of the building’s tradition

The specific offices in question, William Hill can be largely credited for the reputation behind it. Namely, this corporation has been successfully operating the land-based and online sports betting services catering to enthusiasts across the UK. Nonetheless, recent shifts and changes both in the UK and US spheres of economy, law and market trends have prompted the company’s move and the subsequent opportunity for FSB.

William Hill

The company has been looking to shift its focus to no other than the massively untapped USA gambling market. This is so due to the only recent legalization of sports betting practices earlier this year (May 14, 2018) when an official verdict by the US Supreme Court declared an old sport betting law – the PASPA – to be unconstitutional.

While

the legalization of the company’s main area of business has been reason enough for the move, there are talks regarding a more in-depth background to this decision by William Hill executives. Namely, with the UK government’s decision at the start of the year to regulate Fixed Odds Betting Terminals, stakes amounts have been capped at an all-time low of £2, instead of the former £100. Bookmakers operating on UK territory, William Hill included, have consequently suffered a major blow to their overall revenue, ultimately resulting in a decrease of their stock price.

Nevertheless…

The company’s established experience in the industry has provided the ultimate way out – a strategic partnership in the US. Eldorado Resorts, a major casino operator in the US, is the partner at the other end of this 25-year long deal that will see the William Hill company hand over $50 million (app. £39 million) worth of stocks, amounting a bit over 1% ownership. What is more, Eldorado is set to benefit from a 20% stake in William Hill US, the specific branch of the company intended to cater to the US marketplace.
In exchange, the bookmaker is intended to benefit from all the land-based establishments and gambling capacities under the Eldorado Resorts brand name. Numerically, this would expand the operator’s network to cover additional states, amounting to their partner’s current coverage of 11 states and 21 properties, although a pending purchase of the Tropicana Entertainment in Eldorado’s books is intended to add another 13 states with a total of 26 properties.
Such a shift and relocation of major players in the sports betting industry was bound to provoke reactions among their competitors and individual experts, analysts, and ultimately customers. Some comments drift towards criticism, as William Hill’s move to US betting markets is only one in the line of many others from similar establishments.

On the other hand

The supporters of this strategic move by William Hill and the likes emphasize the effects of such business decisions on a macro-level. Namely, a constant flux of land-based and digital sports betting services, as well as online gaming, is most likely to bring about all the more innovations in the industry, as is the case with the simple takeover in office locations between affirmed bookmaker William Hill, and the soon-to-be contender in the industry, FSB.

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