The Stars Group Incorporated inks American expansion deal
Prominent online casino operator, The Stars Group Incorporated, has announced the signing of an agreement with Eldorado Resorts Incorporated that could see it enter the iGaming markets of eleven additional American states.
Long-term alliance:
The Toronto-listed firm used an official Monday press release to detail that the 20-year deal has given it the option to ‘own, operate and brand real-money online sportsbetting, poker and casino offerings’ in states where Eldorado Resorts Incorporated already has a land-based presence subject to local laws, the availability of licenses and the receipt of ‘regulatory approvals.’
Global presence:
The Stars Group Incorporated is responsible for virtual iGaming brands such as PokerStars and FullTilt while July saw it acquire British rival Sky Betting and Gaming from CVC Capital Partners and Sky via a $4.7 billion transaction. The Canadian firm, which was previously known as Amaya Incorporated until a 2017 name-change, subsequently premiered its New Jersey-facing BetStarsNJ.com and PokerStarsNJ.com domains in partnership with the Resorts Digital Gaming LLC entity of Atlantic City’s Resorts Casino Hotel.
‘First skin access’ for sportsbetting:
Rafi Ashkenazi, Chief Executive Officer for The Stars Group Incorporated, explained that the latest alliance will see his firm complement its existing arrangements in Pennsylvania and New Jersey by possibly pursuing iGaming opportunities in the states of Florida, Ohio, Colorado, Illinois, Iowa, Indiana, Mississippi, Louisiana, West Virginia, Nevada and Missouri. In terms of sportsbetting, the 44-year-old stated that the deal with Eldorado Resorts Incorporated gives it ‘first skin access’ in jurisdictions where the Reno-based casino operator is responsible for more than one venue alongside ‘second skin access’ in all other relevant areas.
Ashkenazi’s statement read…
“We are excited to announce this agreement with Eldorado [Resorts Incorporated], one of the fastest growing regional gaming companies in the United States. This agreement establishes the foundation for our United States strategy as we tactically pursue access to other key states and opportunities with potential media partners.”
Revenue benefits:
For its part, Eldorado Resorts Incorporated is responsible for some 28 land-based casinos spread across the United States including the Trop Casino Greenville in Mississippi as well as central Colorado’s Lady Luck Casino Black Hawk and Isle Casino Hotel Black Hawk. It clarified that the arrangement is to see it receive a share of revenues generated by the new sites alongside common shares in The Stars Group Incorporated worth up to $30 million.
Operator ‘excited by union:
Gary Carano, Chairman and Chief Executive Officer for Eldorado Resorts Incorporated, declared that his firm’s properties feature an aggregate portfolio comprising in excess of 30,000 slots and video lottery terminals alongside some 800 gaming tables and over 12,500 hotel rooms.
Carano’s statement read…
“The Stars Group [Incorporated] 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 [Incorporated] to capitalize on its proven ability to leverage its products to gain share in the growing market for online gaming.”
