William Hill, one of the UK’s largest and best-known high street bookmakers, is at the centre of a possible US bidding war that could mean it is bought by the operator of the Las Vegas casino, Caesars Palace. Shares in the British gambling company surged by more than 40% on Friday after the bookie said it had received “separate cash proposals” from a private equity firm, Apollo Management International, which is currently in the running to buy Asda, and from the hotel and entertainment group, Caesars Entertainment. In a statement to the stock exchange, William Hill added: “Following an initial written proposal from Apollo on 27 August 2020, William Hill received a further proposal from Apollo and proposals from Caesars. “Discussions between William Hill and the respective parties are ongoing. There can be no certainty that any offer for William Hill will be made, nor as to the terms on which any offer might be made.” Caesars, which already has partnership deals with William Hill, is best known for running the Caesars Palace hotel on the Las Vegas strip, which itself is famed for hosting performers such as Frank Sinatra, Judy Garland and Elton John, as well as top boxing bouts including the 1987 match between Marvin Hagler and Sugar Ray Leonard, billed as “The Super Fight”. Apollo, which claims to have more than $400bn (£315bn) of assets under management, is a US buyout firm that previously owned Caesars Palace, after buying its then owner Harrah’s Entertainment in 2006. Other investments have included stakes in fellow UK gambling group Ladbrokes Coral, the media firm Endemol Shine, which makes the television programme Masterchef, and the security company ADT. The moves for William Hill, first reported by the financial wire service Bloomberg, come after the City has been full of rumours that William Hill was being lined up as a US takeover target. After being founded as a postal and telephone betting service during the 1930s when gambling was largely illegal in the UK, it grew into one of the best-known names on the UK high street after betting shops were legalised in 1961. However, as this market has become tougher, William Hill’s attentions have increasingly moved to the US. Over the past few years a series of UK betting companies have been jostling for position in the huge and deregulating American market, with William Hill widely seen as being among the leading British firms to have crossed the Atlantic. Its position in the US has been viewed as a key driver for the shares. In April, Fred Done, one of two brothers who owns rival Betfred, acquired a 3% stake in William Hill and told the Poker News website: “I’ve bought Hills shares because they are massively undervalued and in my opinion when it comes to the US they are frontrunners.” That stake was increased earlier this month to just over 6% and the share price rise on Friday alone made the Done brothers more than £35m. However, the investment hasn’t always looked like a certain winner. The bookmaker has been hit hard by Covid-19 and last month it announced plans to close 119 shops permanently and merge its retail and online operations – although it added that a “strong recovery” since sports fixtures began to resume has allowed it to repay £24.5m in furlough funds. Shares in William Hill were up 88.8p at 306.4p on Friday, valuing the business at around £3bn. The suitors have until 23 October to make a firm offer for the FTSE 250 firm under City takeover rules.