PokerStars and its parent company The Stars Group have signed a deal with Eldorado Resorts, Inc. that could open up doors in 11 states across the US.
Announcing the partnership on November 26, the poker, casino and sports betting operator said the deal will give it access to existing and future ventures owned by Eldorado Resorts.
“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,” reads the official press release.
Sports Betting Fuels Partnership
As well as providing PokerStars with a new opportunities following future regulatory changes, the deal will increase The Stars Group’s sports betting provisions. Under the terms of the agreement, the online operator will provide “skin access” in states where Eldorado Resorts currently has one or more casinos.
In practice, this means The Stars Group will provide the sports betting technology on which each casino will construct its own branded website. To facilitate the partnership, The Stars Group will issue one million common shares to Eldorado at a price of $23.22 per share.
On top of the initial $25 million share transfer, an additional $5 million worth of shares will be issued once certain conditions have been met. Finally, Eldorado Resorts will receive a percentage of any revenue generated by products operated by the two companies.
By partnering with another US casino brand, The Stars Group will gain a footing in the following states:
When combined with its existing interests in New Jersey and Pennsylvania, The Stars Group and its subsidiaries will have a presence in 13 states.
PokerStars Expands Its Network
For poker players, the latest news is another positive outcome from the demise of anti-sports betting laws in the US. Although many believe overturning the Professional and Amateur Sports Protection Act (PASPA) will eventually lead to federal online poker regulation, changes are currently taking place on a state-by-state basis.
By forming a partnership with another live operator, PokerStars will have the ability to go live as and when laws are passed in the aforementioned regions. Additionally, it will give the company the jump on its peers and expand its US network ahead of any future liquidity sharing deals.
Indeed, while the tristate pact between New Jersey, Nevada and Delaware hasn’t been as successful as many hoped it would be, more connected states would lead to greater liquidity. In working with Eldorado Resorts, PokerStars will be able to take advantage of this as regulation move across the US.