The Stars Group is making a play for the sports betting market in the United States. The Canadian group has made a deal with a gambling company primarily located in the South and West to add online gambling to casino markets in 13 states. The deal is expected to profit both companies hundreds of millions of dollars over the 20-year of their agreement.
The Stars Group
The Stars Group began as a Canadian company that wanted to be able to create online poker games for adults in the country. Two brothers founded The Stars Group, which was then purchased from the brothers for about $5 billion. After a couple of name changes and rebrandings, the group has become the largest online poker company in the world. The Stars Groups own several brands. Poker Stars, Poker Stars Casino, Bet Stars and Full Tilt Poker. The company also owns the Poker Stars Championship, Poker Stars Festival and Megastack live poker tournaments. The Stars Group has continued to expand, bringing poker to casinos in London, Macau and Manila. In addition, the Stars Group has purchased Sky Betting and Gaming for $5 billion. It is estimated that The Stars Group is worth an estimated $15 billion dollars.
The Eldorado Resorts Group
The Eldorado Resorts Group has been a company since 2014, when it was formed in a merger. Since the merger in 2014, the group has purchased several different casino groups. The group has snapped up casinos across the South as well as Reno, Nevada and Illinois. The group has sold casinos as well, including Presque Isle Downs in Maine and Lady Luck Casino in Vicksburg.
The 20 year agreement has several provisions. The Stars Group already has an agreement with casinos in Mount Airy in Pennsylvania. The group also has an agreement in place with New Jersey to run a mobile sports betting app under the Resorts Casino license. The Resorts Casino sportsbook and the DraftKings sportsbook represented 60% of the online sportsbook business in October.
The agreement states that the Eldorado will give The Stars Group access to its platform for online sportsbets. The Stars Group will also be able to use Eldorado’s platform to expand its online gaming and poker operations into other states. Also, the Stars Group will give Eldorado and initial $25 million in interest in the company, with the option of an additional $5 million if the venture is successful.
The Eldorado Company has also made a deal with William Hill, one of the largest sports betting companies in the UK. William Hill has agreed to open small betshops in Eldorado casinos as part of the agreement. The Eldorado company has 28 properties in 13 states. Five of those states have sports betting already: Nevada, New Jersey, Mississippi, Pennsylvania and West Virginia. Other states, such as Illinois, Louisiana, Missouri and Ohio, have sports gambling proposals in the works. Of all of the other states that Eldorado owns a casino in, the only one that has not shown interest in sports betting is Florida.
Both Eldorado and The Stars Group are hoping that the sports betting landscape will continue to improve nationwide. The Stars Group has been looking to expand into the United States for a while, especially in the online and sportsbook category. Their home country, Canada, has shown no inclination towards changing sports betting laws in the country. While Canada has had liberal betting laws with regard to the lottery, casino gambling and online gambling, they have not changed sports bet laws. Canada has parlay betting only, which means that patrons can only place multiple bets at a time or single bets on multiple sports.
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