The Stars Group – Eldorado Resorts deal will benefit William Hill

News on 27 Nov 2018

Following news of a significant deal between The Stars Group (Stars) and Eldorado Resorts (see previous report), William Hill US has weighed in on the benefits it will also reap from the deal.

According to a press statement William Hill US has approved and will benefit financially from the agreement which gives Stars certain options to operate online betting and gaming in states where Eldorado operates casino properties.

The agreement does not modify the strategic nationwide partnership between William Hill US and Eldorado announced on 5 September and William Hill US will remain Eldorado’s exclusive partner for land-based sports betting services.

William Hill will receive 50 percent of the equity or equivalent in Stars Group payable for access to Eldorado’s online sports betting skins. This equity is made up of an upfront equity interest in Stars of $25 million, with potentially an additional $5 million of equity upon the exercise of the first option by Stars.

A further equity stake may be provided after five years, based on Stars’ net gaming revenue generated in markets accessed via Eldorado.

William Hill will also receive the first $25 million of revenue share payable by Stars and the majority of the revenue share thereafter.

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