Eldorado Resorts Announces Market Access Partnership with the Stars Group
RENO, Nev.--(BUSINESS WIRE)--Nov 26, 2018--Eldorado Resorts, Inc. (NASDAQ: ERI) (“Eldorado” or the “Company”) announced today that it has entered into a 20-year definitive agreement with The Stars Group Inc. (NASDAQ: TSG)(TSX: TSGI) (“TSG”) pursuant to which the Company will provide TSG with options to obtain access to Eldorado’s second skins for online sports wagering. In addition, TSG will have an option to access its third skin to operate real money online gaming and poker operations in the United States.
Under the terms of the agreement, Eldorado will receive a revenue share from the operation of the applicable verticals by TSG under Eldorado’s licenses. Eldorado will also receive an upfront equity interest in TSG of $25 million, and Eldorado may receive an additional $5 million in TSG equity upon the exercise of the first option by TSG. A further equity stake may be provided to Eldorado after five years, based on TSG net gaming revenue generated in Eldorado’s markets, the value of which will come at a fixed ratio based on $23.22 per TSG share.
TSG will operate under Eldorado’s licenses using TSG’s significant portfolio of online brands and its turnkey online sports technology services and Eldorado is providing TSG with access to its government relations personnel as TSG seeks additional licensing. Eldorado’s suppliers will equally share all costs related to licensing and permitting.
Pursuant to the terms of the agreement announced between William Hill and Eldorado on September 5, 2018, William Hill US remains Eldorado’s exclusive provider for land-based retail sports wagering and has consented to the Company’s agreement with TSG. William Hill US will share in the economics of The Stars Group transaction and will have access to Eldorado’s first and third skin for online sports betting in all states.
About Eldorado Resorts, Inc.
Eldorado Resorts is a leading casino entertainment company that owns and operates twenty eight properties in thirteen states, including Colorado, Florida, Illinois, Indiana, Iowa, Louisiana, Mississippi, Missouri, Nevada, New Jersey, Ohio, Pennsylvania and West Virginia. In aggregate, Eldorado’s properties feature more than 30,000 slot machines and VLTs and 800 table games, and over 12,500 hotel rooms. For more information, please visit www.eldoradoresorts.com.
About The Stars Group
The Stars Group is a provider of technology-based product offerings in the global gaming and interactive entertainment industries. Its brands have millions of registered customers globally and collectively are leaders in online and mobile betting, poker, casino and other gaming-related offerings. The Stars Group owns or licenses gaming and related consumer businesses and brands, including PokerStars, PokerStars Casino, BetStars, Full Tilt, BetEast, Sky Bet, Sky Vegas, Sky Casino, Sky Bingo, and Sky Poker, as well as live poker tour and event brands, including PokerStars Players No Limit Hold’em Championship, European Poker Tour, PokerStars Caribbean Adventure, Latin American Poker Tour, Asia Pacific Poker Tour, PokerStars Festival and PokerStars MEGASTACK. The Stars Group is one of the world’s most licensed online gaming operators with its subsidiaries collectively holding license or approvals in 19 jurisdictions throughout the world, including in Europe, Australia, and the Americas. The Stars Group’s vision is to become the world’s favorite iGaming destination and its mission is to provide its customers with winning moments.
This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements regarding our strategies, objectives and plans for future development or acquisitions of properties or operations, as well as expectations, future operating results and other information that is not historical information. When used in this press release, the terms or phrases such as “anticipates,” “believes,” “projects,” “plans,” “intends,” “expects,” “might,” “may,” “estimates,” “could,” “should,” “would,” “will likely continue,” and variations of such words or similar expressions are intended to identify forward-looking statements. Although our expectations, beliefs and projections are expressed in good faith and with what we believe is a reasonable basis, there can be no assurance that these expectations, beliefs and projections will be realized. There are a number of risks and uncertainties that could cause our actual results to differ materially from those expressed in the forward-looking statements which are included elsewhere in this press release. Such risks, uncertainties and other important factors include, but are not limited to (a) the possibility that online and mobile betting and gaming are not approved in various jurisdictions, or, to the extent that such gaming activities are approved, the market for such gaming does not develop as anticipated; (b) risks relating to obtaining and maintaining required licenses, approvals and permits necessary for the operation of online and mobile betting and gaming; and (c) other risks and uncertainties described in our reports on Form 10-K, Form 10-Q and Form 8-K.
View source version on businesswire.com:https://www.businesswire.com/news/home/20181126005270/en/
CONTACT: Thomas Reeg Joseph N. Jaffoni, James Leahy
Eldorado Resorts, Inc. 212/835-8500
KEYWORD: UNITED STATES NORTH AMERICA NEVADA
INDUSTRY KEYWORD: ENTERTAINMENT CASINO/GAMING
SOURCE: Eldorado Resorts, Inc.
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PUB: 11/26/2018 07:30 AM/DISC: 11/26/2018 07:31 AM