(Reuters) William Hill (WMH.L: Quote, Profile, Research), Britain's second biggest bookmaker, expects to raise the proportion of its gross win coming from Internet gambling by up to 50 percent when it launches a new online sports betting platform in November.

The company derives about 20 percent of its gross win from e-commerce, but Chief Executive Ralph Topping told reporters he aims to increase that to about 25-30 percent when the platform, designed by software provider Orbis, is launched on Nov. 27.

"That kind of growth is there for us to aim for but we'll set formal targets early next year," Topping said on Tuesday in a presentation to journalists and sector analysts.

William Hill's online "sportsbook" has struggled over the last year from intensifying competition and technology problems.

The company had attempted to implement a major upgrade of its internet betting operations in-house but was forced to scrap the project, writing down 22 million pounds ($43 million) in the process, after it became apparent that it would require greater investment and take longer than originally envisaged.

It then turned to Orbis, which is highly regarded in the industry and serves clients including Ladbrokes (LAD.L: Quote, Profile, Research) and Paddy Power (PAP.I: Quote, Profile, Research),to get the upgrade back on track. Topping, who was previously the company's Internet director but took up the position of chief executive in February, was at pains to emphasise his commitment to expanding the online business, which he feels was neglected in the past.

William Hill had already successfully halted the decline in growth at its sportsbook and was now achieving double digit percentage growth, thanks partly to the introduction of 30 new games, backed by a new advertising campaign, Topping said.

"There is a new sense of direction. For too long, we regarded ourselves as bookmakers with a bolt-on activity called gaming. There is a substantial opportunity for growth on the Internet," he said.


CONSOLIDATION

Topping indicated that part of that opportunity could be realised through acquisitions. The online gaming industry is regarded as fragmented by analysts and its immaturity makes it prime for consolidation.

"There will be consolidation within the industry. It is inevitable as companies like 888 (888.L: Quote, Profile, Research) are only 10 or 12 years old. If William Hill is involved, it will be within the criteria that we won't pay foolish prices and there has to be a good return for investors," Topping said.

Continuing regulatory uncertainty and the spectre of potential retroactive legal action against previously U.S.-facing operators has prevented deals from coming to fruition in the past.

William Hill's rival Ladbrokes pulled out of a deal to buy 888 last year, citing regulatory concerns.

At 1315 GMT, shares in William Hill were up 0.8 percent at 356.75 pence, as the presentation met with a positive reaction.

Dresdner Kleinwort reiterated its 'buy' recommendation and 630 pence price target on the stock.

"The new sportsbook launch is a medium-term catalyst. However, it is the change in culture at William Hill that we believe will provide incremental gains, with a marked improvement in communication with investors -- the previous lack of which has been reflected in William Hill's discount to Ladbrokes," it said in a research note.

Shares in William Hill have underperformed the FTSE All Share Leisure and Travel Index by 13 percent since the start of the year, reflecting concerns over an economic slowdown. (editing by Will Waterman, Elizabeth Fullerton)