The Stars Group, which is the parent company of Betstars NJ and Pokerstars NJ, have entered into a 20-year deal with Eldorado Resorts Inc, giving them the ability to operate online sports betting sites in the US while using Eldorado’s gaming license. The Stars Group has a history of using casino licenses to launch in states, as they put out their BetStars app in September, a license that DraftKings Sportsbook has also used in the past.
This currently gives them access to 28 sportsbooks in 13 states that Eldorado has operations in:
- West Virginia
- New Jersey
NJ sports betting is already legal, along with West Virginia sports betting, Mississippi sports betting and Nevada sports betting. PA online sports betting doesn’t seem too far away either as they’re about to launch online gaming.
Stars Group CEO Rafi Ashkenazi mentioned in an official press release:
“We are excited to announce this agreement with Eldorado, one of the fastest growing regional gaming companies in the United States,” before adding, “This agreement establishes the foundation for our US strategy as we tactically pursue access to other key states and opportunities with potential media partners.”
On the other side of the partnership, CEO of Eldorado Gary Carano mentioned:
“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.”
Eldorado, Stars Group Poised For Big Sports Betting Revenue
With Eldorado currently operating in 13 states, the deal with the Stars Group already carries a lot of value. But these partners on banking on US sports betting growing over the next few years thanks to the repeal of PASPA in May. According to the press release:
“The agreement grants The Stars Group the option to own, operate and brand real-money online sports betting, poker and casino offerings in each of the applicable states subject to license availability, state law, and regulatory approvals. As it relates to sports betting, The Stars Group’s options will provide first skin access in states where Eldorado owns or operates more than one casino property and second skin access in all other applicable states.”
This is partially in reference to a similar deal signed in September between Eldorado and William Hill, making William Hill an exclusive land-based casino sports betting provider for Eldorado.
As for this new deal, currently the Stars Group will supply Eldorado with $25 million in shares in their company and an additional $5 million of common shares in the future after certain conditions are met. Eldorado also nets additional shares in the Stars Group at $23.22 per share starting five years from when the deal was signed.
This is contingent on the Stars Group’s online sports betting success, which they’re looking forward to as more states legalize online sports betting. All in all, this stands to be a very profitable deal as more states open themselves up to legal online gaming.