William Hill announced today that the companies have entered into a definitive agreement pursuant to which William Hill US will become Eldorado’s exclusive sports betting operator for a period of 25 years at its properties in jurisdictions where sports betting is legal.

Eldorado will also work with William Hill US to leverage its licenses to operate mobile and online sports wagering operations in the United States. At the closing of the transactions contemplated by the agreement, Eldorado will receive a 20% equity stake in William Hill US as well as ordinary shares of William Hill  with a value of $50 million (based on the 60 day volume-weighted average trading price of William Hill PLC shares ending on September 4, 2018.

Pursuant to the terms of the agreement, Eldorado will have the opportunity to monetize its equity in William Hill US following a public offering of William Hill US or through a conversion of the 20% equity stake to William Hill PLC shares or cash at William Hill’s discretion after five years. Eldorado expects its casinos in West Virginia and Mississippi to be ready for sports betting this NFL season.

Gary Carano, Chairman and Chief Executive Officer of Eldorado, commented, “We are excited to extend our existing relationship with William Hill through this agreement to offer in-casino, mobile and online sports wagering to our customers nationwide, subject to regulatory and legal approvals in our 11 current jurisdictions as well as the additional jurisdictions we expect to enter through our pending transaction with Tropicana Entertainment. The terms of the agreement announced today acknowledge the strong expected value to be created as Eldorado rolls out sports betting, following enacting legislation or regulatory approvals, across its broad national geographic platform, which, pro forma for announced transactions includes 26 properties.

“Since 2012, William Hill has provided exceptional service to our customers in Nevada as our exclusive sports book operator at Eldorado Resort Casino Reno, Circus Circus Hotel Casino Reno and Silver Legacy Resort Casino Reno. Based on our long-term experience with sports betting we are confident that sports betting will bring new customers and a new revenue stream to our regional properties while serving as a significant revenue driver for our existing gaming and non-gaming businesses. We believe William Hill represents the gold standard in global sports wagering and expect our expanded partnership, including an attractive equity stake in their U.S. business and in William Hill PLC, to extend the excitement of sports wagering to our growing platform of leading casino resorts while creating value for all shareholders.”

Philip Bowcock, Chief Executive Officer of William Hill PLC, added, “As we sought to expand our U.S. presence following the Supreme Court’s decision to overturn PASPA, we sought to be aligned with a strong partner with a large and growing footprint across the country. Given our existing arrangement with Eldorado Resorts in Nevada, we understand their commitment to providing guests with unbeatable service and market-leading gaming and entertainment amenities and we see their values as closely aligned with ours. We are excited to work with the Eldorado team to bring the best in in-casino, mobile and online sports wagering experience to customers in Nevada and beyond as the jurisdictions Eldorado serves begin to legalize sports wagering.”

Eldorado’s 20% equity stake in William Hill US includes all of William Hill US’ existing businesses in Nevada, New Jersey, Delaware, Iowa, Mississippi, West Virginia, along with The Bahamas and St. Kitts, as well as future Eldorado and non‐Eldorado U.S. business. William Hill US generated adjusted operating profits of $28.5 million in 2017.

William Hill US and Eldorado have agreed to invest equally in the development and construction of in-casino sports books as well as in the infrastructure needed to support in-casino wagering as well as mobile and online wagering. The companies expect to focus initially on New Jersey, Iowa, Mississippi and West Virginia.

William Hill US has also secured, pursuant to this agreement, the right to operate online real money casino gaming under any second skin for such gaming activity held by Eldorado.