William Hill and Kambi Expectations of Launching IPO in America

May 13, 2020 18:05Joe Tarzaiski
Online Betting Companies Expanding into America

GAN, the platform provider for both FanDuel and DraftKings, has witnessed strong IPO’s in the United States over the past few weeks. This has grown interest in several other companies to pursue the interest in the American gambling community.

Financial analysts feel strongly the next firms that launch a U.S. IPO will be William Hill and Kambi. Both operators have already developed a relationship with the U.S. market, and look to continue their growth with their current share value in London and Stockholm.

GAN and DraftKings have seen their company revenue increase at a rapid rate due to U.S. investors since the rise of the devastating arrival of the COVID-19 pandemic. They expect the numbers of online financial success to continue to escalate once major sports entities lift their suspensions and resume sporting activity.

The projections of both DraftKings and GAN have both been surpassed by U.S. investors, which will most likely bring additional jump on board with the growth of the online sports betting world. Two companies, in particular, have been recently spotlighted as the online betting world continues to grow.

Financial Gain Projected for Kambi

Andreas Aaen, Symmetry Invest’s CEO, has been tracking Kambi’s revenue is growing in the U.S. market. Aaen stated: “It would make perfect sense for me to see Kambi list [in the US]. More and more of their revenue comes from the US. I think Kambi would trade at 500 SEK or so in the US if you look at GAN and DK valuations.”

What About William Hill Financial Gains?

William Hill may have a better chance of achieving greater financial gain by expanding their company growth through the United States. They are already affiliated with several land-based casinos throughout the country and will continue to build their enterprise using the recent increase in online gambling to their advantage as they divulge in this process of continuing to saturate the United States market.

The London-based company has been devastated over the past two months, falling over $1 billion in debt. The negative numbers continue to increase, drawing concern without the rebirth of sports.

An analyst suggested a way to raise funds for the short term to keep the company afloat during this pandemic. They stated: “Given the look-through valuations for US-focused peers such as DraftKings and FanDuel, this may be viable with the least dilution for PLC shareholders.”

William Hill could take advantage of the situation and take a chunk of its equity state in William Hill US. This would allow the operator to list itself in the US market. Divesting part of their stake would ultimately prevent their shoulders from stopping the move due to share dilution Selling to a private equity company could also be considered.

Joe Tarzaiski
Lady Liberty
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Joe Tarzaiski began his sports writing career in 2004 in the Philadelphia market, analyzing and handicapping professional sports, college sports, poker and various table games. He currently reports on the increased efforts on the legalization and continual growth of sports betting throughout the United States. A Philadelphia University alum, Joe is dedicated to following current trends in both the gaming community and daily news throughout the sports world.
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