Eldorado Resorts Reaches 20-Year Deal With The Stars Group for Online Sports Betting, Gambling
Posted on: November 27, 2018, 07:51h.
Last updated on: November 27, 2018, 07:51h.
Reno-based Eldorado Resorts and Canada’s The Stars Group (TSG) have entered into a 20-year partnership for the latter to provide the casino company with online sports betting and internet gambling.
The Stars Group, most known for its ownership of PokerStars, the largest online poker room in the world, will give Eldorado a $25 million interest in its company in exchange for the “second skin” rights to become an online sports betting provider of the regional casino operator’s numerous properties spread across the US. TSG will also obtain the option to access third skins for internet gambling and poker.
Eldorado owns and operates 28 casinos in 13 states. It has casinos in five of the eight states where full-fledged sports betting is up and running (Mississippi, Nevada, New Jersey, Pennsylvania, West Virginia). Nevada, New Jersey, and Pennsylvania additionally have some sort of legal online gambling.
TSG’s brands include its sports betting platform BetStars, and the PokerStars Casino.
Skin in Game
William Hill reached a 25-year deal in September with Eldorado Resorts to operate its land-based sportsbooks. The contract delivered Eldorado a 20 percent stake in the bookmaker’s US operations, as well as $50 million worth of shares in the larger British William Hill corporation.
Along with land-based sports betting, the arrangement gives William Hill the first rights to online sports betting services and internet gambling. Skins refer to how a company such as William Hill and TSG brand their services along with an Eldorado property such as the Tropicana in Atlantic City.
Should William Hill decide operating an online sportsbook or casino at one of Eldorado’s regional properties isn’t worth the investment or time, TSG will have the option.
“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,” Eldorado CEO Gary Carano said in a release.
Eldorado isn’t The Stars Group’s first US partnership. TSG is already the online casino and mobile sports betting provider for Resorts Casino Hotel in Atlantic City, and the Mount Air Casino in Pennsylvania.
Eldorado Continues Expansion
Eldorado is one of the leading domestic regional casino operators. And it’s trying to maintain pace with rival Penn National Gaming, as the two companies continue their offensive throughout the country.
In wake of the US Supreme Court’s decision in May to repeal the longstanding federal sports betting prohibition, gaming industry analysts predicted that regional operators stood to benefit the most.
Morgan Stanley said in a note that companies like Eldorado and Penn, which focus on regional casinos, or those not in Las Vegas or Atlantic City, will see new revenue in states that wish to participate.
To expand its regional holdings in 2018, Eldorado acquired the operational rights to Tropicana Entertainment and its seven casinos for $640 million. It also bought the Grand Victoria Casino in Illinois for $328 million.
Not to be outdone, Penn reached a deal to acquire Pinnace Entertainment for $2.8 billion in cash and stock.
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