Empire Sports Inc. has announced it will form a “strategic alliance” with Bet365 which will develop and offer sports betting and online gaming at its Resorts World Catskills in New York as soon as New York state legalizes sports betting.
An affiliate of Bet365 will acquire up to $50 million of Empire common stock at a price of $20 per share, making the company Empire’s second-largest stockholder. The agreement covers 20 years. According to press releases, the companies will equally share profits after Bet365 recoups start-up and other costs.
Additionally, Kien Huat Realty III, Ltd. Empire’s largest stockholder, has committed to purchase up to $126 million of convertible preferred stock, with a conversion price of $20 per share, the release said.
“Joining forces with Bet365 positions Empire and our flagship Resorts World Catskills to lead a potentially enormous new market,” said Manny Pearlman, executive chairman of Empire Resorts. “Bet365’s global expertise in effectively developing and executing world-class sportsbooks strongly complements Empire’s leadership in commercial casino operations in New York.”
New York does not currently allow sports betting, but legalization and the formalizing of regulations are expected to pass the state’s legislature in 2019.
“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 U.S.,” said Simon Betteley, president of Hillside, a Bet365 affiliate in the release.
Resorts World Catskills in Kiamesha Lake, on the site of the former Concord Hotel and is the state’s largest integrated commercial casino resort destination with close proximity to Manhattan, the release said.
In July, Bet365 announced it will run the sportsbook at the newly opened Hard Rock Atlantic City, though the casino has yet to open the facility.
