As part of a 20-year definitive agreement with Eldorado Resorts, The Stars Group (TSG) will gain access to Eldorado Resorts’ online sports betting skins in the states where Eldorado owns or operates casino properties.
The deal is structured so that TSG gets first skin rights for Eldorado’s multiple casino property states, and ‘second skin’ for all others.
Additionally, TSG will have an option to access its third skin to operate real money online gaming and poker operations in the United States.
The agreement currently covers Colorado, Florida, Illinois, Indiana, Iowa, Louisiana, Mississippi, Missouri, Nevada, Ohio, and West Virginia, which, when combined with existing market access deals in New Jersey and Pennsylvania, gives TSG access to 13 states.
Rafi Ashkenazi, Chief Executive Officer of TSG, commented: “We are excited to announce this agreement with Eldorado, one of the fastest growing regional gaming companies in the United States. 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.”
Gary Carano, Chairman and Chief Executive Officer of Eldorado, added: “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 capitalise on their proven ability to leverage their products to gain share in the growing market for online gaming.”
Under the terms of the agreement, Eldorado will receive a revenue share from the operation of the applicable offerings by TSG, it will also issue Eldorado approximately 1m common shares at a price of $23.22 per share for a value of $25m and an additional $5m of common shares upon TSG’s exercise of the first option and following the satisfaction of certain conditions.
In spite of this deal, William Hill retains its status as Eldorado’s exclusive provider for land-based retail sports betting, with the operator also maintaining access to Eldorado’s first and third skin for online sports betting in all applicable states.