Global betting giant William Hill has applied to acquire Tom Waterhouse’s online betting business and Australian bookmaking licences, InDaily has been told.

The first test for the London FTSE 100 listed betting group’s takeover will be at a Northern Territory Racing Commission (NTRC) meeting in Darwin on Wednesday.

The NTRC controls the issue and transfer of betting licences in Darwin, the centre of online and sports betting businesses in Australia.

They will consider an application from Tom Waterhouse (NT) Pty Ltd to transfer its licence to William Hill.

Reports have been circulating since May that William Hill, Ladrokes and Bwin had been in negotiations with Waterhouse, whose business has offices in Darwin, Sydney and Melbourne.

In July the Australian Financial Review reported William Hill was in negotiations with the Waterhouse companies.

A successful takeover by the London-based outfit, reportedly the biggest bookmaker in the world, will further consolidate the Australian online gambling market, worth $6 billion dollars annually.

William Hill acquired major player Sportingbet in March this year in a $500 million deal.

Sportingbet had already swallowed up Australia’s first online betting agency, Centrebet, in a 2011 acquisition worth a reported $183 million.

Ireland’s biggest bookmaker Paddy Power acquired another major player – Melbourne-based Sportsbet – in 2010.

The only major local left in the marketplace after the Waterhouse deal will be Australia’s Tabcorp which owns the Luxbet brand.

The Tom Waterhouse sale is rumoured to value the business between $50 million and $500 million, but most likely at the bottom end of that range, sources told InDaily.

The sources suggested that Tom Waterhouse will take a much lower public profile in the business as it makes it’s transition to William Hill.

The 31-year-old is the fourth generation of Australia’s best known betting family to work in the industry.

He was recently caught up in a controversy over sports betting television advertising and in late May he responded to the public outcry saying: “I’m sorry … you will see less of me on TV”.

Waterhouse built his business around personal links to major sports as a pseudo-commentator with live coverage sponsorships with the National Rugby League, AFL, Cricket Australia, Australian Rugby Union and Tennis Australia.

He even featured in commentary and analysis of Channel Nine’s Wimbledon coverage.

Earlier this year his escalating presence on free-to-air television led to a backlash from the public and was seized on by politicians.

South Australian Senator Nick Xenophon said: “Tom Waterhouse has pushed the envelope to the extent that it has now got to the point that it’s out of control and there needs to be a legislative response”.

South Australian Premier Jay Weatherill legislated against live odds promotions during sporting event broadcasts in South Australia.

William Hill had to defend its Australian expansion policies last week when it posted lower than expected half-year earnings on the London stock exchange.

First half earnings came in just ahead of forecasts but also showed that Sportingbet was paying a hefty premium in Australia to sign up new customers compared with what William Hill spends, Reuters reported.

William Hill shares fell 7 percent on Friday, the largest fall in the FTSE 100 index of leading British shares and a setback after the stock had climbed more than 70 percent over the past year.

Analysts told Reuters initial returns from Australia were lower than expected and that favourable sports results could not necessarily be maintained, tempting investors to cash in gains.

“You really have to ask yourself if all the good news is priced in,” says Michael Hewson, analyst at CMC Markets.

William Hill’s Chief Executive Ralph Topping defended the Sportingbet deal, noting that Australia was one of the world’s largest online gambling markets.

“You never buy a perfect business. This business has a lot going for it but there are imperfections in it and there is upside for us on the digital side,” Topping told reporters.

“This was the last significant asset in Australia and we bought it and we take a long-term view of businesses,” he said, defending the $500 million deal of this March.

Topping, who has worked for William Hill for more than four decades, said the company planned to beef up the Australian website, offer gamblers more wagers and improve marketing.

If Waterhouse is sidelined after the deal, it will be the end of a 115-year run for the bookmaking family.

Tom Waterhouse is a fourth generation bookmaker, and the great grandson of one of the first official bookmakers in Australia.

The first bookmaker in the family was Charles Waterhouse, who got his licence in 1898.

Charles’s son, William “Bill” Waterhouse was a successful bookmaker in the 1960s and 1970s and was followed by his son Robbie Waterhouse.

Bill and Robbie lost their bookmaker’s licences for eighteen years (originally life bans) due to their involvement in the Fine Cotton substitution scandal in 1984.

InDaily was unable to contact William Hill and tomwaterhouse.com offered no comment.