The Stars Group Makes Play For US Sports Betting

Last week it was revealed that The Stars Group were making a play for the US Sports Betting Market. By signing a 20 year deal with Eldorado Resorts, Stars Group is one step closer.

“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.” – CEO Rafi Ashkenazi The Stars Group

Eldorado Resorts :

Eldorado Resorts is a US based company. Located in Reno, Nevada, Eldorado runs several casinos across 12 states. Before the legalization of sports betting in the US, Eldorado dealt solely in casino game services. Since then Eldorado has been building their sports betting operations. Last September, Eldorado made their first sports betting deal with UK operator William Hill. In this joint venture, William Hill agreed to open small betting shops within Eldorado Resorts.

“Partnering with Eldorado gives William Hill access to one of the largest and most attractive casino footprints with 23 million customers across multiple states. This partnership provides extensive cross-sell and profit growth opportunities to both parties. Together we are positioned to capture the evolving US opportunity – starting with land-based sports betting, and extending to digital sports betting and, in some states, online gaming.” – William Hill CEO Phillip Bowcock

Partnering with The Stars Group should help Eldorado’s casinos establish themselves as sports betting destinations.

According to the deal, The Stars Group will be able to use Eldorado’s assets to launch online sports betting. The Stars Group is also free to use Eldorado’s assets to expand into new states (as they legalize). In return for this access, Eldorado will receive $25 million dollars. An extra $5 million dollars will be handed over pending the deal’s success. Although, this may sound like a lot of money. For The Stars Group, it’s just small fries. It is estimated that the group is worth around $15 billion.

What does Eldorado get from the deal?

In addition to the potential $30 million, there are a number of other benefits. Firstly, Eldorado Resorts do not need to spend time on creating their own online sportsbook. Instead, Eldorado is relying on the expertise of the Stars Group. Founded in 2001, The Stars Group has nearly 20 years of experience. It is also home to the world-famous Pokerstars. By partnering with The Stars Group and William Hill, Eldorado will become a huge name in US Sports Betting.

Since June, last year the market has grown considerably. To date, 5 states have legalized sports betting. They are Nevada, New Jersey, Delaware, Pensylvania, and West Virginia. Several other states including California, Connecticut, and Massachusetts are in the process of legalizing.

How much will sports betting in the US be worth?

There is no doubt that the US market has the potential to make a lot of money. How much money? According to Jay L. Zagorsky is an economist and research scientist at The Ohio State University figures suggest around $67 billion a year. Which is a large sum, but much less than forecasted figures of $150 billion dollars.

“After making both adjustments, this suggests that if people in the U.S. are allowed to make bets at the same rate as in the U.K., the size of the industry would be about $67 billion a year. While enormous, that’s a far cry from $150 billion.” – Jay. L. Zagorksy for The Conversation

As of yet, there is no sign that Canada will legalize single sports betting. Meaning that many Canadians still use illegal sports betting operators to place bets.

“We know that Canadians enjoy single-event sports betting because they are wagering approximately $14 billion annually through illegal channels.” – Paul Burns CEO of the Canadian Gaming Association.

It is thought, that the Canadian Government is carefully watching the US. This is to observe and follow as more US States legalize. Should Canada change its laws, it will most likely follow in the US steps.

Keep checking in with Playcasinos.ca as we follow any developments.