The Stars Group Extends to 11 States Via Eldorado Resorts

The Stars Group Extends to 11 States Via Eldorado Resorts

Globally established video poker operator, The Stars Group, has just significantly expanded its reach to 11 more US states, owing to a done deal with one of nation’s largest casino conglomerates, Eldorado Resorts.

The iGaming operator whose PokerStars brand is one of the most influential and financially successful in the industry will be granted to roll out online sports betting, poker and a wide variety of casino table games in all the states where Eldorado has its properties and venues.

The Stars Group In Attacking Formation

This news comes shortly after the announcement by The Stars Group PR team that the company has launched online sports betting in conjunction with Atlantic City’s Resorts Casino Hotel, via the PokerStars New Jersey branch.

The company has also entered Pennsylvania’s booming online gaming market through a penned deal with Mount Airy Casino Resort…

…The terms of the agreement reached with Eldorado Resorts read that the Eldorado receives revenue share from The Stars Group offerings operations whereas The Stars Group will issue Eldorado cca 1 million shares at a price of $23.22 per share for a total value of $30 million.

Eldorado would be gain rights to more common shares of The Stars Group at a price of $23.22 per share in five years’ time, with a quantity of added shares that Eldorado will potentially issue depending on The Stars Group’s success in online gaming sector in new states. The success will be measured by net gaming revenue generated in each state.

A Lot of Ground Covered

According to the agreement and the count of states in which Eldorado currently has or will have representative venues, The Stars Group will enter markets of Colorado, Florida, Iowa, Louisiana, Indiana, Illinois, Missouri, Mississippi, West Virginia, Nevada, and Ohio.

Along with the aforementioned New Jersey and Pennsylvania, that brings the total tally of The Stars Group’s states in which they’re operational to 13.

The operator will be delivering first skin access in those states where Eldorado operates more than one property and second skin access in all others.

Eldorado’s Chairman and Chief Executive Officer, Gary Carano, comments: “The Stars Group 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 to capitalize on their proven ability to leverage their products to gain share in the growing market for online gaming.”

His colleague at The Stars Group, Rafi Ahskenazi, added: “We are excited to announce this agreement with Eldorado, one of the fastest growing regional gaming companies in the United States. This agreement establishes the foundation for our U.S. strategy as we tactically pursue access to other key states and opportunities with potential media partners.”

Source:

“The Stars Group partners Eldorado Resorts to expand US reach”, igamingbusiness.com, November 26, 2018.

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