Eldorado Resorts Announces Market Access Partnership with the Stars Group
November 26 2018 - 7:30AM
Business Wire
Eldorado to Receive Revenue Share and
Upfront TSG Equity Stake of $25 Million in Exchange for Providing
TSG Access to Eldorado’s Online Sports Wagering, Online Gaming and
Online Poker Licenses
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.
Forward-Looking Statements
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.
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version on businesswire.com: https://www.businesswire.com/news/home/20181126005270/en/
Thomas Reeg Joseph N. Jaffoni, James LeahyPresident JCIREldorado
Resorts, Inc. 212/835-8500775/328-0112
eri@jcir.cominvestorrelations@eldoradoresorts.com
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