Eldorado Resorts (ERI) announced that it has partnered with The Stars Group (TSG). In this 20 year deal, TSG will provide online sports, internet gaming and online poker under the ERI casino brands.
The Stars Group brings its expertise in online gaming and internet sports betting. TSG owns well-known internet gambling brands such as PokerStars, BetStars and Full Tilt, among others. This is really a turnkey solution for Eldorado and provides a much quicker and cheaper solution than developing and maintaining its own online gaming solutions.
As part of the deal, in addition to revenue share, Eldorado will obtain an equity interest in The Stars Group. At the onset, ERI will receive a $25 million equity interest in TSG. TSG has the option for an additional equity interest of $5 million which it can excessive in the future.
This deal with TSG comes on the heels of Eldorado’s deal with William Hill back in September. Through that deal, William Hill will run the in-casino sports books in Eldorado casinos for the next 25 years.
Eldorado has also been in expansion mode lately. Most recently, it acquired most of the Tropicana casinos, including the Trops in Atlantic City and Las Vegas.
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With sports betting and online gambling taking hold legally throughout the country, the ERI partnership with TSG makes great strategic sense and offers ERI the opportunities to expand online in a much more strategic and seamless way.