The Stars Group Partners with Eldorado
Canadian gambling giant The Stars Group (TSG) has inked a US-facing online gaming and sports betting deal with popular operator Eldorado Resorts.
Early this week, the Group announced the signing of an exclusive 20-year deal that will enable it to own, brand and operate online casino, wagering and poker operations in Eldorado’s 13 current states of operation. The agreement is now pending the necessary legislative and license securing processes.
TSG’s new deal has given it ‘first skin access’ to iGaming in states in which Eldorado is currently operating more than one website, as well as second skin access in a number of other states as well. Eldorado will supply the company with access to its government relations staff to assist with licensing efforts, while its suppliers are willing to share all licensing and permit costs equally with the Canadian corporation.
William Hill Sanctions Agreement
The US operator already has a 25-year partnership in play with prolific bookmaker William Hill. WillHill serves as the firm’s exclusive land-based punting partner, and has also consented to the Eldorado-TSG deal – along with to sharing in the deal’s economics. The bookie also has first and third skin access for online sports wagering in all of the aforementioned states.
The newly signed deal will see Eldorado being granted a revenue share from The Stars Group’s affiliated online sites, as well as one million common shares in the firm, which are worth around $25 million today. Another $5 million in TSG shares will also be thrown in should the latter exercise its first option. Based on a number of performance indicators, the operator will also be able to acquire further shares in TSG in five years’ time at $23.22 per piece.
CEOs Comment on the Partnership
CEO of The Stars Group Rafi Ashkenazi has dubbed the US company as one of the fastest-growing firms in America, and said that the deal establishes the foundation of his firm’s US strategy. The deal comes as TSG tactically pursues access to other key states, along with expansion opportunities with possible future media partners.
CEO of Eldorado Gary Carano in turn called TSG one of the world’s biggest, most heavily licensed, and most diverse iGaming companies on the public market, saying that it has a proven ability to use its products to claim a share in the growing online gambling sphere. Carano’s company has drastically expanded its geographical footprint, which now totals 28 properties, over the past few years, thanks to its recent acquisition of Capri Casinos and Tropicana Entertainment.
TSG brand BetStars has also recent launched its first American online sports betting platform in New Jersey through its existing iGaming deal with Resorts Casino & Hotel of Atlantic City. The firm also has a pending deal on hold in Pennsylvania.