Bet365 enters 20-year strategic alliance with Empire Resorts Inc. to create sportsbook in New York state.
In an epic 20-year agreement, the firms will create both a retail and online sportsbook at the resort as soon as the law allows.
Under the terms of the agreement, one of Bet365’s affiliates will get up to $50m of Empire common stock, at a price of $20 per share, in two tranches – immediately making it Empire’s second largest shareholder. After Bet365 has covered its initial costs, the two firms will share profits from the sportsbook equally.
One of four casinos in New York state already authorised to provide retail sports betting, pending the official final approval of new betting laws. Resorts Wold Catskills is the newest and largest integrated commercial casino resort destination with the closest proximity to Manhattan.
Commenting on the deal, Executive Chairman of Empire Resorts, Manny Pearlman said:
“Joining forces with Bet365 positions Empire and our flagship Resorts World Catskills to lead a potentially enormous new market.
“Bet365’s global expertise in effectively developing and executing world-class sportsbooks strongly complements Empire’s leadership in commercial casino operations in New York.”
While President of Hillside, a Bet365 affiliate, Simon Betteley added:
“This landmark agreement, which combines Empire’s gaming operating skill with our expertise in providing best-in-class online sports betting, allows Bet365 to tap into what we believe will be one of the most significant online and sportsbook markets in the US.”
Bet365 is the world’s sports betting superpower, with annual revenues of over $3 billion, and this new strategic alliance will potentially give it access to the second largest market jurisdiction for sports betting in the United States (after California), estimated to be worth around $1 billion in revenues within 5 years of legalisation.