At the end of last month, Stars Group signed an agreement, for expanding its business, with Eldorado Resorts. Under the agreement, Star Group will be getting the opportunity to operate its online gaming and betting business at the existing properties of Eldorado Resorts as well as at its future properties.
Star Group, with its own market in Pennsylvania and New Jersey, will now be getting access to 11 others states including West Virginia, Colorado, Ohio, Florida, Nevada, Illinois, Missouri, Indiana, Mississippi, Iowa and Louisiana making its coverage to 13 states.
Subject to the state laws, approval from regulators and availability of license, now under the agreement Star Group for its poker, online sports betting and casino offering, has got the option to own, operate and brand real-money for its business.
Initially Star Group will be providing its gaming services where the Eldorado Resorts exists with at least two or more locations and further expanding it to the other states having Eldorado have single location.
From the agreement, Eldorado will not only enjoy the share from the revenue generated by the operations of The Star Group offerings but will also be provided with approximately 1 million common shares issued by the Star Group at the rate of $23.22 per share a value of $25 million. Upon the Star Group’s satisfaction of certain conditions to exercise its first option, Eldorado will be eligible to get the additional common shares worth $5 million. Starting in five years, Eldorado will also be entitled to grab the common shares of Star Group at the rate of $23.22 per share, and this will likely to be based upon the success of online gaming offering of the Star Group through Eldorado’s properties in each applicable state.
For BetStars, a brand of Star Group, used to launch its online sports betting in New Jersey through BetStars, Resorts Casino Hotel has recently joined the Star Group.