The Stars Group has inked a twenty year definitive agreement with US casino entertainment firm Eldorado Resorts, for online betting and gaming across the country.
Pertaining to operations within states where Eldorado currently, or in the future, owns or operates casino properties, The Stars Group are granted the option to own, operate and brand real-money online sports betting, poker and casino offerings in each applicable state.
Relating to sports betting, the company is to provide first skin access in states where Eldorado owns or operates more than one casino property, and second skin access in all other relevant regions.
Those covered as part of the fresh alignment are Colorado, Florida, Illinois, Indiana, Iowa, Louisiana, Mississippi, Missouri, Nevada, Ohio and West Virginia, adding to New Jersey and Pennsylvania, where The Stars Group already enjoys market access.
“We are excited to announce this agreement with Eldorado, one of the fastest growing regional gaming companies in the United States,” stated Rafi Ashkenazi, chief executive officer of The Stars Group. “This agreement establishes the foundation for our US strategy, as we tactically pursue access to other key states and opportunities with potential media partners.”
Under the terms of the agreement, Eldorado will receive a revenue share from the operation of the applicable verticals by The Stars Group under its licenses.
Furthermore, Eldorado is to also receive an upfront equity interest of $25m, and may receive an additional $5m in equity upon the exercise of the first option by the group.
A further equity stake may also be provided after five years, based on net gaming revenue generated in Eldorado’s markets, the value of which will come at a fixed ratio based on $23.22 per share.
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.”