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This week Canadian gambling giant The Stars Group has signed a 20 year sportsbetting agreement with Eldorado Resorts, which will poise the online giant to offer services in new markets as online betting is legalized.
The agreement will see Stars getting the option to offer online services through Eldorado owned casinos in areas where online sportsbetting is legal. The ability to potentially offer online casino and poker games in the future as well. The company will get the second skin rights, meaning that they come in second to William Hill, who currently has first skin rights.
To secure the agreement TSG paid $25 in equity share in its company, with a further $5 million available. That could grow even higher after five years, dependent on the revenue taken in by the agreement. Eldorado has operations in thirteen states, and the deal covers Colorado, Florida, Illinois, Indiana, Iowa, Louisiana, Mississippi, Missouri, Nevada, Ohio, and West Virginia.
Commenting on the agreement Stars Group CEO Rafi Ashkenazi said, "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."
Eldorado CEO Gary Carano added: "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."