Eldorado & William Hill Sign 25-Year Partnership

In a business move that will make history, two gaming industry titans – Eldorado Resorts and William Hill – have formed a sports betting partnership, exclusively US market-based, that will span 25 years, with an option of contract extension!

The casino operator has managed to secure a $50 million equity stake in the UK’s betting powerhouse, as well as additional 20% of stakes in the William Hill US subsidiary.

The foundations of this agreement were laid out in September of last year and have propelled William Hill to the status of a sole sports betting technology provider for Eldorado Resort’s land-based properties – all of them – in USA.

A Deal of a Decade

Both parties will make generous investments in equal shares towards in-venue sportsbook development. They will also work closely, both in terms of technical research and financial contribution, on launch of online and mobile wagering. Some US states already permit this type of betting, while some others are still preparing to introduce it.

Another important part of the deal is that…

…in states that require online operators to be tied up to a land-based property, Hill will have the rights to conduct sports betting business using Eldorado’s license. First skin usage of sports book and third skin, where applicable, are also rightfully Hill’s.

As for Eldorado, the gambling behemoth has gained 20% equity stakes in Hill’s US subsidiary, 13.4 million of shares in the parent company listed in London, as well as the right to sell the betting firm’s stakes or convert them to shares or cash after five years if the US subsidiary completes a public offering.

The Stars Group Gets in On it

A separate 20-year agreement has been struck with The Stars Group which will give the famous poker operator an ability to kickstart online sports betting second skin and online casino and poker third skin.

For this, Eldorado Resorts gets equity interest in The Stars Group…

…as well as a portion of revenue that is gained via iGaming operations. The two brands recently formed an alliance extending The Stars Group’s reach to 11 states where Eldorado operates.

Driving Visitation and Making New Revenue

Tom Reeg, Eldorado’s chief executive, comments that the extension of long-term partnership with William Hill is simply a sealing the deal with leading provider of multi-channel solutions in order to launch sports wagering “across our current platform of 26 properties,” when legislations and regulatory approvals permit.

He added: “Based on our long-term experience in Reno, we believe that the addition of sports wagering to our entertainment offerings will drive customer visitation and create a new revenue stream at our properties while enhancing our existing gaming and non-gaming revenue.”

In October last year, Eldorado completed the $1.85 billion acquisition of Tropicana Entertainment which made them new owners of 26 land-based properties scattered around 12 states.

Source:

“Eldorado Resorts finalises William Hill partnership”, igamingbusiness.com, January 30, 2019.

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