The Stars Group Inks a New Eldorado Resorts Deal
The Canadian gaming and online gambling company The Stars Group is set to increase its market footprint in the betting and gaming market in the United States.
In order to so, the Toronto-headquartered company has inked a new partnership agreement with the Nevada-based casino operator Eldorado Resorts.
Increasing the Market Presence
Under the provisions of the latest market access agreement, PokerStars – online brand owned by The Stars Group – will gain access to markets of 11 US states, where it will offer online betting, poker, and online casino games. Of course, the offering will differ from state to state, depending on the local regulations.
Three of these states have already made betting on sports legal – Mississippi, Nevada, and West Virginia, while the other eight – Colorado, Florida, Illinois, Indiana, Iowa, Louisiana, Missouri, and Ohio, are getting ready to do so in the coming period.
At this moment, The Stars Group offers its service in New Jersey, through the partnership with Resorts Digital, and will do the same once online gaming market in Pennsylvania opens for business, thanks to a deal with Mount Airy Casino Resort.
Commenting on the latest deal, Rafi Ashkenazi, The Stars Group Chief Executive Officer said the company was excited to announce this agreement with Eldorado, one of the fastest growing regional gaming companies in the United States.
He pointed out this agreement would establish the foundation for The Stars Group’s US strategy as the gaming giant tactically pursued access to other key states and opportunities with potential media partners.
What Does Eldorado Get?
Under the provisions of this deal, Eldorado will receive a portion of revenue The Stars Group generates in other states, as well as $25 million in the company’s common stock. Once The Stars Group goes live through the agreement, the American operator will gain an additional $5 million in shares. Eldorado will be able to get more shares in the future.
Eldorado Resorts’ chairman and Chief Executive Officer Garay Carano said The Stars Group was one of the world’s largest, most licensed and most geographically and product diverse publicly listed online gaming companies, and added he was excited to work with the Canadian giant to capitalize on their proven ability to leverage their products to gain share in the growing market for online gaming.
This is another important deal for Eldorado Resorts in the last couple of months. Back in September, it inked an agreement with renowned UK operator William Hill, which saw the company gain access to 11 states and made them Eldorado’s exclusive provider of betting technology across all channels.
About The Stars Group
The Stars Group (formerly known as Amaya Inc.) is a Canadian gaming and online gambling company traded on Nasdaq and the Toronto Stock Exchange and headquartered in Toronto, Ontario.
Founded in 2001, the company, which currently employs around 1,800 people, produces and offers online gaming products and services including poker, casino, and sportsbook through its online gaming division, Stars Interactive. These online brands are PokerStars, PokerStars Casino, BetStars and Full Tilt Poker.