The Stars Group partners Eldorado Resorts for US expansion

The Stars Group partners Eldorado Resorts for US expansion

Monday, November 26, 2018 Posted by News Team
The Stars Group
Casino operator has already struck a similar agreement with William Hill

The Stars Group is preparing to significantly expand its presence in the US betting and gaming market through a new deal with casino operator Eldorado Resorts. 

The market access agreement provides the PokerStars operator with a path into 11 US states, allowing it to launch online betting, poker and casino where regulation permits. 

Three of the states covered by the agreement - Mississippi, Nevada and West Virginia - have already launched sports betting. The other eight - Colorado, Florida, Illinois, Indiana, Iowa, Louisiana, Missouri and Ohio - are all expected to regulate the vertical, and potentially other forms of gambling, in the coming years. 

Currently the operator is live in New Jersey, with Resorts Digital, and has partnered Mount Airy Casino Resort to move into Pennsylvania’s iGaming market once the sector opens for business. 

“We are excited to announce this agreement with Eldorado, one of the fastest growing regional gaming companies in the United States,” The Stars Group chief executive Rafi Ashkenazi said. 

“This agreement establishes the foundation for our US strategy as we tactically pursue access to other key states and opportunities with potential media partners.”

The market access agreement will see Eldorado receive a percentage of revenue generated from The Stars Group’s activities in each state. The Reno-based operator will also gain $25m in The Stars Group common stock, followed by a further $5m in shares once the operator launches its first offering through the agreement. 

Eldorado will also be able to acquire more Stars Group shares based on the operator’s future performance. 

“The Stars Group is one of the world’s largest, most licensed and most geographically and product diverse publicly listed online gaming companies,” Eldorado chairman and CEO Gary Carano said. “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 deal marks the second time Eldorado has partnered an overseas operator, following a deal with William Hill in September. This saw the UK operator gain access to the 11 states, as well as becoming Eldorado’s exclusive betting technology provider across all channels.

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