A “strategic alliance” for 20 years is not a small deal. That is exactly what Empire Resorts announced this Wednesday with a subsidiary of Bet365. They aim to together offer sports betting and online gambling platform to millions of users for a period of 20 years. They have had enough resources to claim such a big collaboration or partnership. The Resorts World Catskills, which is one of their properties, is a vast $1.2 billion facility for a casino that was launched early this year in Monticello. Their hopes are to earn back the investment and having a partner only helps.
Now, if anyone can bet themselves to be the world’s largest online platform for gambling, casino, and sports betting, it’s Bet365. It comes from Europe and is a big player there. Definitely, the ambitions to expand into the US market are an alluring concept that materialized the partnership from the other end. If you fail to recall, let me help you here. Bet365 already has another such partnership with Hard Rock Atlantic City which was announced only in July. So, there is a lot of hope and tons of money being poured into resources. And, this is not a surprise keeping in mind the current pace of online sports betting platforms, sites, and options through the use of mobile devices.
Well, a good thing for the stockholders is that they found a 35% increase in their prices following this announcement.
The current strategic partnership
The idea of strategic partnerships goes beyond the scope of small branding or renaming. In case of Hard Rock, there is more of a branding scene than anything else. But, in the case of Bet365, the promises are huge.
Bet365 has to power the retail sportsbooks operations of Empire Resorts as well as being the driving force behind its all online/mobile sports betting platform. This scope also covers online casino and gambling. So, both the companies have a lot to give and take. A note here about iGaming bills about their loss of prominence is because of the gear shift of consumers towards sports betting very recently. And, when there is a shift, the market follows. Manny Pearlman is the Executive of Resorts World’s newly opened property we just mentioned above. For all purposes, they practice and wish to make their casino the leading and biggest destination for sports wagering in New York. So, New York is going to experience a big time at Monticello.
Offering world-class gaming options, gaming sportsbooks and commercial casinos in New York is a dream come true for the US giant. The partnerships are going to be very fair. They are going to split the profits into the half. Bet365 is going to invest 50 million in the venture. And, that will make it Empire Resort’s 2nd largest shareholder.
Sports betting in New York
So far, we know that 4 commercial casinos have the license of offering sports betting legally. This was done following a referendum in 2013. The NYS Gaming Commission seems to be in no hurry for making NY sports betting a thing of fashion. The US Supreme Court has still strict orders for regulators to create rules for the industry that is being set up in the scene. The referendum included a clause to express authorization for sports betting too along with expanding the casino landscape. It was passed, yet the court has made very clear their intent.
If only regulations are passed quickly, these casinos can operate sports betting freely. This is mandatory for making sports gambling legal under statutory language. The Commission Staff is going very slow and steady on this and there is a hanging sword. All the four are commercial casino giants and are still struggling to stay profitable financially. If the regulations come fast, NY will be able to bring in an annual revenue of $1 billion within the next five years, as projected, after full legalization.
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