Evening Standard (London): Hill puts its money on Stanley bookies

BOOKMAKING on the High Street became a two-horse race today, after William Hill threw down the gauntlet to Ladbrokes by acquiring the betting shops of Stanley Leisure for Pounds 504 million in cash.

William Hill said the deal offered it an opportunity to increase its scale and said it did not believe any intervention by the Office of Fair Trading would be material.

The deal lands William Hill another 624 betting shops and, for the first time, a presence in both Northern Ireland and the Republic. It also peps up its representation in North-West England where it has been underrepresented.

As much as the traditional betting on horses and dogs, William Hill has its eye on extending its offering of the video roulette games and their like, the fixed odds betting terminals, income from which is transforming bookmakers' bottom lines.

"Success in fixed odds betting is about being able to offer the widest range of competitively priced betting opportunities to the largest number of customers," said William Hill chief executive David Harding. "This acquisition represents an opportunity to increase its distribution reach, while simultaneously realising benefits of scale."

The sale price values the Stanley betting shop estate at 13.5 times underlying operating profits.

The deal leaves Stanley with its casino interests where it will be investing to increase the number of gaming machines.