William Hill in further US expansion talks | City A.M.

William Hill is in talks with a US casino firm to further expand its operations across the Atlantic.

City sources have named Penn National Gaming as the operator in question, although the bookmaker itself has declined to comment on the specific tie-up.

Talks are said to be at an early stage.

If it goes ahead, the deal will see the FTSE 250 firm merge its sports betting technology with the footprint of Penn National gaming, which largely operates under the Hollywood brand.

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This would give William Hill a presence in an additional 29 casinos throughout 16 states.

Talks of a new tie-up come hot on the heals of a statement on Friday in which the bookmaker announced, “major expansion plans” after signing sports betting agreements with eleven casinos in Mississippi and a “soon-to-be-announced” casino partner in West Virginia.

All agreements are subject to regulatory approval.

The statement added: “William Hill US is also in advanced discussions with operators about deals that cover casinos in a further fourteen states in the US about similar sports betting agreements.”

William Hill’s rush to enhance its presence in the US comes as it seeks to repair the damage inflicted on its balance sheet by new UK government regulation aimed at curbing fixed-odds betting terminals.

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The machines, found in betting shops, will now see their maximum bet reduced from £100 to £2 in an effort to curb problem gaming.

However, the move resulted in a £883m write-down at William Hill, pushing it to a £820m pre-tax loss.