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The Stars Group and Eldorado Resorts Enter Agreement for Online Betting and Gaming Market Access

George Miller

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The Stars Group and Eldorado Resorts Enter Agreement for Online Betting and Gaming Market Access
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The Stars Group Inc. today announced that it entered into an agreement with Eldorado Resorts, Inc. 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.

George Miller started his career in content marketing and has started working as an Editor/Content Manager for our company in 2016. George has acquired many experiences when it comes to interviews and newsworthy content becoming Head of Content in 2017. He is responsible for the news being shared on multiple websites that are part of the European Gaming Media Network.

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Gambling in the USA

Delaware igaming industry performs well in January

Niji Ng

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Delaware igaming industry performs well in January
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The Delaware Lottery’s financial results have shown that igaming performed robustly on the financial front in January 2019, by posting a 57.9 per cent increase in revenues year-on-year.

Revenue rose to $279,541 (£217,970/€247,999), showing a 11.2 per cent month-on-month from December last year.

Players wagered $7.4m across the state’s three licensed igaming sites in January 2019, which represented a 65.5 per cent year-on-year advance, but a 27.7 per cent fall from the $10.3m staked in December 2018. Players won a total of $7.2m during the month.

Video lottery accounted for $190,223.44 of total monthly revenue, a 68.0 per cent share, followed by table games, which contributed a further $66,982.14. Poker rake and fees, on the other hand, contributed just $22,335.51.

Player registrations also grew significantly in January, up 117.3 per cent to 578.

The majority of revenue was generated by Dover Downs, which saw its more than double from $48,215.61 in the prior year to $139,816.37, with 233 players registering to play over the month.

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Gambling in the USA

New Hampshire challenges US Department of Justice over online gambling

Niji Ng

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New Hampshire challenges US Department of Justice over online gambling
Photo Source: bingoresourceguide.com
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New Hampshire and the company that supports the state’s iLottery system have sued the U.S. Department of Justice over a legal opinion that could put an end to online gambling and state-run lotteries.

The Justice department issued a legal opinion in November that re-interpreted the federal Wire Act of 1961 to ban interstate wagering. The department had been maintaining that online gambling within states that does not involve sporting events would not violate federal law, but in the November opinion, the officials said the law applies to any form of gambling that crosses state lines.

The New Hampshire Lottery Commission filed a lawsuit in federal court citing that the opinion subjects its employees to prosecution, creates uncertainty about whether it should cease operations and could cost the state more than $90 million a year.

Only a small portion of that total comes from the “iLottery” platform the state launched in September and is expected to bring in $4 to $6 million in the fiscal year that starts in July. But the broadest interpretation of the opinion would prohibit all lottery-related activities that use the internet, Attorney General Gordon MacDonald argued in the complaint. That includes transmission of data to backup servers set up in other states.

“Today New Hampshire is taking action to protect public education,” Gov. Chris Sununu said in a statement. “The opinion by DOJ puts millions of dollars of school funding at risk, and we have a responsibility to stand up for our students.”

“There is no indication in the plain language of (the Wire Act), its structure, its purpose, or its legislative history of an unmistakable Congressional intent to outlaw state-conducted lottery activity,” MacDonald wrote. “If Congress wishes to criminalise the interstate transmissions required to operate state-conducted lotteries, it must do so in clear, unmistakable language. Congress has not done that in the Wire Act. ”

NeoPollard Interactive, which offers support for New Hampshire’s iLottery hardware and software, has also filed a suit.

The company’s attorney, Matthew McGill, called the justice department’s opinion a “lawless act.”

“This opinion would subject to felony prosecution conduct that two court of appeals, including the First Circuit, have said is lawful,” he said in a statement. “This is an outrageous and dangerous usurpation of authority.”

The Department of Justice declined to comment.

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Gambling in the USA

Minnesota mulls legalising tribal sports betting

Niji Ng

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Minnesota mulls legalising tribal sports betting
Photo Source: sportshandle.com
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Minnesota is planning to formulate a new bill for legalising sports betting at tribal casinos in the state.

The new bill, named the new Safe and Regulated Sports Gambling Act of 2019, was introduced by Representative Pat Garofalo. It proposes plans to form the Minnesota Sports Wagering Commission, an authority that will have the powers to regulate the state’s sports betting market.

The bill would allow in-person sports wagering at casinos runs by recognised tribes in Minnesota, while consumers would also be able to place bets via mobile and other electronic devices on-site. The bill stipulates that any mobile app to block access to consumers if they are more than 20ft away from a tribal property.

Consumers can bet on all sports and events authorised by the Commission, including US collegiate sports, but wagering on virtual events would not be permitted.

According to the proposal, the new commission will sanction two types of licenses: a sports pool licence and a mobile and electronic sports pool licence, with casinos permitted to apply for both types of licences. The bill does not set out the cost for either licence.

The bill would also enable casinos to enter into agreements with third parties to manage or operate an on-site sports pool, a mobile and electronic sports pool, or both.

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