Stars Group Inks Eldorado Resorts Deal for Online Gaming Access
The Stars Group has announced that they entered into a 20-year agreement with Eldorado Resorts that grants them the option to operate online betting and gaming in the states where Eldorado owns and operates casinos.
Eldorado will provide the Stars Group with option to their second skins for online sports wagering and third skins to operate real money online gaming and poker operations in the United States.
Gary Carano, Chairman and Chief Executive Officer of Eldorado commented, “The Stars Group is one of the world’s largest, most licensed and most geographically and product diverse publicly listed online gaming companies. We are excited to work with The Stars Group to capitalize on their proven ability to leverage their products to gain share in the growing market for online gaming.”
The Stars Group has scooped a perfect deal to significantly expand its presence in the US betting and gaming market.
Under the terms of the agreement, the Stars Group can own, operate and brand real-money online sports betting, poker and casino offerings in each of the applicable states subject to license availability, state law and regulatory approvals. The agreement currently covers 11 states which, when combined with The Stars Group’s existing market access deals in New Jersey and Pennsylvania, gives The Stars Group access to up to 13 states.
Three of the states covered by the agreement, Mississippi, Nevada and West Virginia, have already launched sports betting. The other eight, Colorado, Florida, Illinois, Indiana, Iowa, Louisiana, Missouri and Ohio, are all expected to regulate the vertical, and potentially other forms of gambling, in the coming years.
“We are excited to announce this agreement with Eldorado, one of the fastest growing regional gaming companies in the United States,” said Rafi Ashkenazi, Chief Executive Officer of The Stars Group. “This agreement establishes the foundation for our U.S. strategy as we tactically pursue access to other key states and opportunities with potential media partners.”
The market access will see Eldorado receive a percentage of revenue generated from the Stars Group in each state. Eldorado will also gain $25 million in the company’s common stock and additional $5 million once the Stars Group launches its first offering through the agreement.
Nevada-based company already has a similar agreement with William Hill. The two companies have 25-year partnership in which William Hill serves as Eldorado’s exclusive land-based partner. William Hill “has consented with the Stars Group deal.”
