TORONTO, Nov. 26, 2018 /CNW/ - The Stars Group Inc.
(NASDAQ: TSG)(TSX: TSGI) today announced that it entered into an
agreement with Eldorado Resorts, Inc. (NASDAQ: ERI) that grants it
the option to operate online betting and gaming in the states where
Eldorado currently or in the
future owns or operates casino properties. The agreement currently
covers 11 states (Colorado,
Florida, Illinois, Indiana, Iowa, Louisiana, Mississippi, Missouri, Nevada, Ohio,
and West Virginia) which, when
combined with The Stars Group's existing market access deals in
New Jersey and Pennsylvania, gives The Stars Group access to
up to 13 states. Unless otherwise noted, all dollar ($) amounts are
in U.S. dollars.
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.
"We are excited to announce this agreement with Eldorado, one of the fastest growing regional
gaming companies in the United
States," said Rafi Ashkenazi, Chief Executive Officer of The
Stars Group. "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."
Gary Carano, Chairman and Chief
Executive Officer of Eldorado
commented, "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."
Under the terms of the agreement, Eldorado will receive a revenue share from the
operation of the applicable offerings by The Stars Group, and The
Stars Group will issue Eldorado
approximately 1 million common shares at a price of $23.22 per share for a value of $25 million and an additional $5 million of common shares upon The Stars
Group's exercise of the first option and following the satisfaction
of certain conditions. Further, Eldorado would be entitled to additional
common shares of The Stars Group at a price of $23.22 per share beginning in five years. The
number of additional shares potentially issuable to Eldorado would be solely based on the success
of The Stars Group's online gaming offerings in applicable states
as measured by net gaming revenue generated in each applicable
state.
This announcement follows The Stars Group and Resorts Casino
Hotel's recent launch of online sports betting through The Stars
Group's BetStars brand in New
Jersey alongside its existing online poker and casino
offering available through PokerStarsNJ and PokerStarsCasinoNJ, as
well as The Stars Group's partnership with Mount Airy Casino Resort
to enter Pennsylvania's online
gaming market.
Macquarie Capital (USA) Inc.
acted as financial advisor to The Stars Group.
About The Stars Group
The Stars Group is a provider of technology-based product
offerings in the global gaming and interactive entertainment
industries. Its brands have millions of registered customers
globally and collectively are leaders in online and mobile betting,
poker, casino and other gaming-related offerings. The Stars Group
owns or licenses gaming and related consumer businesses and brands,
including PokerStars, PokerStars Casino, BetStars, Full Tilt,
BetEasy, Sky Bet, Sky Vegas,
Sky Casino, Sky Bingo, and Sky
Poker, as well as live poker tour and event brands, including the
PokerStars Players No Limit Hold'em Championship, European Poker
Tour, PokerStars Caribbean Adventure, Latin American Poker Tour,
Asia Pacific Poker Tour, PokerStars Festival and PokerStars
MEGASTACK. The Stars Group is one of the world's most licensed
online gaming operators with its subsidiaries collectively holding
licenses or approvals in 19 jurisdictions throughout the world,
including in Europe, Australia, and the Americas. The Stars Group's
vision is to become the world's favorite iGaming destination and
its mission is to provide its customers with winning moments.
About Eldorado Resorts, Inc.
Eldorado Resorts is a leading casino entertainment company that
owns and operates 28 properties in 13 states, including
Colorado, Florida, Illinois, Indiana, Iowa, Louisiana, Mississippi, Missouri, Nevada, New
Jersey, Ohio, Pennsylvania and West Virginia. In aggregate, Eldorado's properties feature more than 30,000
slot machines and VLTs and 800 table games, and over 12,500 hotel
rooms. For more information, please visit
www.eldoradoresorts.com.
Cautionary Note Regarding Forward Looking Statements and
Other Information
This news release may contain forward-looking statements and
information within the meaning of applicable securities laws.
Forward-looking statements can, but may not always, be identified
by the use of words such as "anticipate", "plan", "continue",
"estimate", "expect", "may", "will", "intend", "could", "might",
"would", "should", "believe", and similar references to future
periods or the negatives of these words and expressions. These
statements are based on management's current expectations and are
subject to a number of risks, uncertainties, and assumptions.
Examples of these statements include, but are not limited to,
statements regarding the expected benefits to be achieved as a
result of the market access agreement referenced in this news
release, the passage of applicable legislation related to online
betting and gaming, the inclusion of applicable market access or
skins in any such legislation and The Stars Group's ability to
operate online betting or gaming profitably in these states, or
otherwise. There can be no assurance that actual results will
not differ materially from those expressed or implied in
forward-looking statements. Undue reliance should not be placed on
forward-looking statements. Please refer to The Stars Group's most
recent annual information form and annual and interim financial
statements and management's discussion and analysis for more
information about the factors, assumptions and risks that may apply
to The Star's Group's forward-looking statements. Each
forward-looking statement speaks only as of the date hereof, and
The Stars Group undertakes no obligation to correct or update any
forward-looking statement, whether as a result of new information,
future events or otherwise, except as required by applicable
law.
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SOURCE The Stars Group Inc.