TORONTO, Aug. 1, 2019 /PRNewswire/ -- The Stars Group Inc.
(Nasdaq: TSG) (TSX: TSGI) today announced that it entered into an
agreement with Penn National Gaming (Nasdaq: PENN) that grants it
options to operate online betting and gaming in states where Penn
currently owns or operates casino properties. The agreement covers
nine states, which, when combined with The Stars Group's existing
market access deals, gives The Stars Group access in up to 20
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 currently provide first
skin access in Illinois,
Indiana, Ohio and Texas, and second skin access in Kansas, New
Mexico, Maine, Massachusetts and Michigan.
"We are excited to announce this agreement with Penn, a
respected leader in the gaming and racing industry in the United States," said Rafi Ashkenazi, Chief
Executive Officer of The Stars Group. "This agreement further
extends our market access platform, as we work to establish our FOX
Bet business as one of the leaders in the emerging U.S. online
betting and gaming market."
Timothy J. Wilmott, Chief
Executive Officer of Penn commented, "The Stars Group is one of the
world's largest publicly listed online gaming companies. Its
agreement with FOX Sports positions it to become a leader in the
U.S. industry, and we are excited to work with The Stars Group to
capitalize on its proven ability to leverage its products to gain
share in the growing market for online gaming."
Under the terms of the agreement, Penn will receive a revenue
share from the operation of the applicable offerings by The Stars
Group, an up-front cash payment of $12.5
million, and potential additional cash payments upon and
following The Stars Group's exercise of each option.
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, FOX Bet, BetEasy, Sky Bet,
Sky Vegas, Sky Casino, Sky Bingo, Sky Poker, and
Oddschecker, as well as live poker tour and events 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 21 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 Penn National Gaming
Penn National Gaming owns,
operates or has ownership interests in gaming and racing facilities
and video gaming terminal operations with a focus on slot machine
entertainment. The company operates 41 facilities in 19
jurisdictions. In total, Penn National Gaming's facilities feature
approximately 50,500 gaming machines, 1,300 table games and 8,800
hotel rooms. The company also offers social online gaming through
its Penn Interactive Ventures division and has leading customer
loyalty programs with over five million active customers.
Cautionary Note Regarding Forward Looking Statements and
Other Information
This news release may contain
forward-looking statements and information within the meaning of
applicable securities laws. Forward-looking statements can, but may
not always, be identified by the use of words such as "anticipate",
"plan", "continue", "estimate", "expect", "may", "will", "intend",
"could", "might", "would", "should", "believe", and similar
references to future periods or the negatives of these words and
expressions. These statements are based on management's current
expectations and are subject to a number of risks, uncertainties,
and assumptions. Examples of these statements include, but are not
limited to, statements regarding the expected benefits to be
achieved as a result of the market access agreement referenced in
this news release, the passage of applicable legislation related to
online betting and gaming, the inclusion of applicable market
access or skins in any such legislation and The Stars Group's
ability to operate online betting or gaming profitably in these
states, or otherwise. There can be no assurance that actual results
will not differ materially from those expressed or implied in
forward-looking statements. Undue reliance should not be placed on
forward-looking statements. Please refer to The Stars Group's most
recent annual information form and annual and interim financial
statements and management's discussion and analysis for more
information about the factors, assumptions and risks that may apply
to The Stars Group's forward-looking statements. Each
forward-looking statement speaks only as of the date hereof, and
The Stars Group undertakes no obligation to correct or update any
forward-looking statement, whether as a result of new information,
future events or otherwise, except as required by applicable
law.
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SOURCE The Stars Group