BOOKMAKER WILLIAM Hill plans to boost its online business with a €190 million deal with software developer Playtech.
The company, which operates betting shops in Ireland and Britain, is merging part of its online business with a number of subsidiaries of Playtech, a London-listed gaming software producer.
Under the deal's terms, Playtech will take a 29 per cent stake in a new business, William Hill Online, in return for merging €190 million worth of its operations into the enlarged internet operation.
The online business will offer sports betting, poker and casino games.
William Hill chief executive Ralph Topping said the company had been unable to build its own online business, so it decided to buy in the expertise it needs.
"This transaction is a transformational step for William Hill consistent with our stated strategy to increase online gaming and international earnings," Mr Topping said yesterday.
Customers across Europe will be "funnelled" into William Hill Online through the Playtech operations it has acquired.
William Hill also announced yesterday that the amount of money it has won from customers increased in the 15 weeks that ended on October 14th.
The company released a management statement yesterday saying that gross winnings in the 15-week period increased by 9 per cent over the same time last year.
Gross win from its 2,250 shops was up 10 per cent in the 15 weeks ending October 14th. While gross win from high rollers fell 30 per cent, the interactive business was up 21 per cent.
"We are not seeing a slowdown," said Ralph Topping, chief executive. "The business is doing well, but we would never say we are recession-proof."
Gross winnings are difference between the amounts staked by punters and that returned to them on winning bets.
As a general rule in the betting industry, customers win back somewhere between 89 cent and 85 cent out of every €1 they bet. The 11 to 15 cent is the bookmaker's gross win.
"Total gross win increased by 9 per cent in the period which represents a good performance, albeit against weak comparatives in the prior year," William Hill said. "For the year to date cumulative gross wins have increased by 5 per cent."
William Hill admitted the comparable period last year was weak, and the boost to its share price yesterday - rising nearly 15 per cent - owed perhaps more to the Playtech deal. ( Additional reporting; Financial Times service)
