The Stars Group partners Eldorado Resorts
News on 26 Nov 2018
News on 26 Nov 2018
The Stars Group has signed a significant revenue-share agreement with Eldorado Resorts granting it the option to operate online betting and gaming in the states where Eldorado currently or in the future owns or operates casino properties.
Under the terms, The Stars Group gains the option to 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 comprising Colorado, Florida, Illinois, Indiana, Iowa, Louisiana, Mississippi, Missouri, Nevada, Ohio, and West Virginia, 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.
As it relates to sports betting, The Stars Group’s options will provide first skin access in states where Eldorado owns or operates more than one casino property and second skin access in all other applicable states.
“We are excited to announce this agreement with Eldorado, one of the fastest growing regional gaming companies in the United States,” Rafi Ashkenazi, Chief Executive Officer of The Stars Group, said. “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: “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 will issue Eldorado approximately 1 million common shares at a price of $23.22 per share for a value of $25 million and an additional $5 million of common shares upon The Stars Group’s exercise of the first option and following the satisfaction of certain conditions.
In addition, Eldorado would be entitled to additional common shares of The Stars Group at a price of $23.22 per share beginning in five years. The number of additional shares potentially issuable to Eldorado would be solely based on the success of The Stars Group’s online gaming offerings in applicable states, measured by net gaming revenue generated in each applicable state.
