Century Casinos has inked a deal with bet365 to run a sportsbook in Colorado. Billed as the world’s largest online sportsbook operator, the company offered no timeline to launch, but will now seek a sports betting license from the state.
Under the agreement, bet365 will pay Century a minimum annual revenue guarantee and a percentage of net gaming revenue for the next 10 years, according to Legal Sports Report.
Colorado could be the second active market for bet365 after it debuted in New Jersey in 2018.
While the firm generates almost $4 billion in annual sportsbook revenue and employs some 4,600, it has yet to make a major splash in the U.S.
But bet365 leads the market in a variety of jurisdictions, from the U.K. to Italy thanks to its large range of in-play markets. The bet365 site streams more than 190,000 events annually.
The Colorado market went live May 1 in spite of a lack of sports. Initial participants included FanDuel, DraftKings, BetRivers and BetMGM.
Colorado allows one skin per license, and Century operates the Century Casino & Hotels in Cripple Creek and Central City. The bet365 agreement marks the second of three Century has handed out. The first went to Circa Sports, with one more to strike a deal for.
Century also operates casinos and racetracks in Missouri and West Virginia, along with Canada and Poland.
The company hopes to reopen its properties over the next few months, according to CDC Gaming Reports. To accomplish that, Century will follow state guidelines, which are expected to include limited hours, reduced capacity, use of masks and other personal protective equipment, and social distancing guidelines.
“We plan to meet or exceed all safety requirements set forth by health officials,” co-CEOs Erwin Haitzmann and Peter Hoetzinger said in a statement.
During the quarter that ended March 31, Century reported a loss of $45.9 million, after reporting a profit in the same period a year earlier. Net operating revenue increased 92 percent to $87.7 million, due primarily to completing its acquisition of Isle Casino Cape Girardeau and Lady Luck Casino Caruthersville in Missouri and Mountaineer Casino Racetrack and Resort in West Virginia.
Century said first quarter results showed it had $50 million in cash on its balance sheet. Executives expect the company to spend $20 million to fully re-launch its casino operations after the Covid-19 shutdown.
Stifel Financial gaming analyst Brad Boyer said Century could get by even if it brings in no revenue until August before its financial picture is stretched thin.
“We believe the company has options, such as renegotiating its lease obligations, that could provide additional runway in a long-term shutdown scenario,” Boyer said in a note to investors.
