What’s Happening to WHO?

Back in 2008, William Hill, one of the biggest names in gambling and bookmaking, entered into a joint-venture with software giant Playtech to create William Hill Online (WHO). WHO enjoyed great financial success to the tune of £432 million during 2011, 40% of which was generated by Playtech. However, profits alone do not seem to be enough to keep the individual companies happy and working together.

Playtech currently owns 29% of WHO and has full veto power when deciding on new acquisitions for WHO. This is just one of the problems for William Hill. William Hill’s chief executive Ralph Topping said: “The freedom for the development of our online business must lie with William Hill.”

Other issues stem from the Israeli side. Last year Israeli staff members staged a walkout when they heard rumours that William Hill would be moving Israeli staffed positions to Gibraltar.

Playtech and William Hill have reached their limits after court battles, injunctions and employee walk-outs. Both sides agree that the situation cannot continue as is and needs to change. They are currently in talks to discuss the possible future options for WHO which could see a restructured agreement between the two companies or William Hill buying out Playtech.

WHO is now one of the largest online gambling companies and it accounts for over a third of William Hill’s profits. According to a clause in the original agreement, William Hill has the option to buy out Playtech by this November. That would be an expensive endeavour for William Hill, costing as much as £354 million.

For now the future of WHO is still unclear even though negotiations between the two companies has resumed. A final decision is expected by late summer.