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Land of opportunity for William Hill

While the gambling company is being clobbered by new regulation in the UK, a relaxation of regulation in the US could lead to major gains across the Atlantic
September 27, 2018

Investing in bookie William Hill is certainly a gamble at the moment. This year has proved that regulation can be a burden or a blessing. Tighter regulation in the UK and Australia have savaged William Hill's (WMH) business and resulted in a gargantuan £916m first-half exceptional hit. By contrast, the overturning of legislation banning sports betting in the US and a flurry of stateside partnership deals represents a massive opportunity for the gambling company.

IC TIP: Buy at 264p
Tip style
Growth
Risk rating
High
Timescale
Long Term
Bull points

Vast US opportunity
Sale of Australian business
Online gambling
Attractive yield

Bear points

Massive FOBT impairment
Falling UK retail profits and potential closures

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