Collaboration Between New York’s Premier
Integrated Commercial Casino Resort Destination and World’s Largest
Online Sports Betting Operator Positions Resorts World Catskills as
Leading NY State Sports Betting and Gaming Destination
bet365 to Invest up to $50 Million to Become
Empire Resorts, Inc.’s Second Largest Shareholder
Kien Huat Realty III, Ltd. Commits up to $126
Million Investment via Convertible Preferred Stock
Empire Resorts, Inc. (NasdaqGM: NYNY) (together with its
subsidiaries, “Empire”) and an affiliate of bet365 Group Limited
(“bet365”) today announced a strategic alliance to develop a
physical and online sportsbook in New York State at Resorts World
Catskills, New York’s newest and largest integrated commercial
casino resort destination with closest proximity to Manhattan.
Empire and an affiliate of bet365, the world’s largest online
sports bookmaker, entered into a 20-year agreement (the “Sports
Wagering Agreement”) to offer retail sports betting, an online
sportsbook and online gaming at Resorts World Catskills if and when
permitted by applicable law. Under the Sports Wagering Agreement,
Empire and bet365 will establish New York’s premier sports betting
and online gaming option. This agreement provides for the companies
to share profits 50/50 after bet365 recoups its start-up and other
costs.
In connection with the Sports Wagering Agreement, an affiliate
of bet365 will acquire up to $50 million of Empire common stock at
a price of $20 per share in two tranches, making it Empire’s second
largest stockholder. Additionally, Kien Huat Realty III, Ltd.
(“Kien Huat”), 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 investment by bet365 and the
commitment by Kien Huat strengthens Empire’s financial position and
underscores Kien Huat’s view of the potential for value creation in
Empire’s Resorts World Catskills.
Resorts World Catskills is one of only four commercial casinos
in New York State currently authorized by statute to offer retail
sports betting pending the promulgation of regulations.
Resorts World Catskills is ideally positioned to offer sports
betting with the expertise of bet365, which is ranked No. 1 in
sportsbook revenues globally with annual revenues of over $3
billion and No. 1 in the EGR Global Power 50 rankings from 2010 to
2017. bet365 operates a highly successful in-play betting product
with a scalable and growing mobile platform.
“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, Inc.
“bet365’s global expertise in effectively developing and executing
world-class sportsbooks strongly complements Empire’s leadership in
commercial casino operations in New York. This collaboration, which
will enable Resorts World Catskills to be a leading destination for
sports wagering in New York State, highlights our commitment to the
continued growth of Resorts World Catskills, as well as our
dedication to working with the best, most innovative pioneers in
the industry to provide world-class gaming options.”
The alliance provides bet365 access to the New York State sports
wagering market, which, according to market estimates by Eilers
& Krejcik Gaming LLC, is expected to be the single largest
market jurisdiction for sports betting in the United States other
than California, with projections for more than $1 billion in
annual revenues from sports betting within five years of
legalization.1 Following the announcement of a market access deal
in New Jersey earlier this year, bet365 is well positioned for
sports betting expansion into New York State.
“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 United States,” said Simon Betteley, President of Hillside
(New York) LLC, a bet365 affiliate.
The alliance with bet365 is the next phase of Resorts World
Catskills’ growth, including the addition of a new hotel with two
dining and entertainment venues by the end of the year. In 2019,
two additional hospitality venues are expected to open at the
destination resort in which Resorts World Catskills is located. The
Kartrite Hotel and Indoor Waterpark is scheduled to open in the
first quarter of 2019, and a Rees Jones redesign of the well-known
Monster golf course will debut in the second half of 2019.
Following its initial investment, which closed today, an
affiliate of bet365 will own approximately 4.9% of Empire’s
outstanding common stock. Pursuant to the Sports Wagering
Agreement, the parties expect to use the bet365 brand and online
consumer facing sports betting and digital platform.
Moelis & Company LLC acted as financial advisor and Milbank
Tweed Hadley & McCloy LLP, Sidley Austin LLP, Ellenoff Grossman
& Schole LLP and Fox Rothschild LLP acted as legal counsel to
Empire Resorts, Inc. Brownstein Hyatt Farber Schreck LLP acted as
legal counsel to bet365 Group Limited.
About Empire Resorts, Inc.
Empire Resorts, Inc. was organized as a Delaware corporation on
March 19, 1993, and since that time has served as a holding company
for various subsidiaries engaged in the hospitality and gaming
industries.
Empire owns and operates Resorts World Catskills, an all-season integrated destination casino
resort located in Sullivan County, New York, approximately 90 miles
from New York City. Resorts World Catskills includes an 18-story
hotel, casino and entertainment complex featuring more than 100,000
square feet of gaming action including 2,150 state-of-the-art slot
machines, 150 live table games, a poker room and private gaming
salons. The casino resort also offers more than 10 varied bar and
restaurant experiences, which includes an Italian steakhouse
created by celebrity chef Scott Conant, and year-round live
entertainment at the 2,500-seat RW Epicenter, casino bars and
lounges. The luxurious hotel, which, upon completion, is comprised
of 332 suites, including 27 premium accommodations consisting of
garden suites, penthouse suites and two-story villas, the Crystal
Life Spa, two indoor pools, and two fitness centers.
The destination resort in which Resorts World Catskills also
includes an entertainment project providing additional
entertainment, food and hotel accommodations which will be
completed by the end of the year. In 2019, a Rees Jones-redesign of
the well-known Monster golf course and The Kartrite Hotel and
Indoor Waterpark will also be added to this destination resort.
Empire also owns and operates Monticello Casino and
Raceway, a 45,000-square foot video gaming machine and harness
horseracing facility located in Monticello, New York,
approximately 90 miles northwest of New York City.
Further information about the Company is available
at www.empireresorts.com,www.rwcatskills.com and www.monticellocasinoandraceway.com.
About bet365
bet365 is the world’s largest online sportsbetting company with
annual sportsbook revenues of over $3 billion and over 4,000
employees.
bet365 offers the industry’s widest range of ‘in-play’ sports
betting events with around 75 sports covered and over 160,000
events being live video streamed annually on the bet365 sites,
offering customers the ability to watch those sports events whilst
betting.
bet365 is licensed and regulated in Great Britain, Gibraltar,
Malta, Denmark, Estonia, Spain, Italy, Ireland, Bulgaria, Cyprus
and Australia and has multiple other license applications pending
or in process. bet365 has extensive experience at working with
local licensing, regulatory and reporting requirements and pays
substantial duties and license fees in each of those
jurisdictions.
bet365 is recognised as an industry leader and has been the
winner of many industry awards including the eGamingReview Operator
of the Year and Sportsbetting Operator of the Year, and is
currently rated #1 in the eGR Power 50’ as a result of its
reputation and influence within the industry.
Cautionary Statement Regarding Forward Looking
Information
This press release includes "forward-looking statements"
intended to qualify for the safe harbor from liability established
by the Private Securities Litigation Reform Act of 1995. These
statements include statements about our plans, strategies,
financial performance, prospects or future events and involve known
and unknown risks that are difficult to predict. As a result, our
actual results, performance or achievements may differ materially
from those expressed or implied by these forward-looking
statements. In some cases, you can identify forward-looking
statements by the use of words such as "may," "could," "expect,"
"intend," "plan," "seek," "anticipate," "believe," "estimate,"
"predict," "potential," "continue," "likely," "will," "would" and
variations of these terms and similar expressions, or the negative
of these terms or similar expressions. Such forward-looking
statements are necessarily based upon estimates and assumptions
that, while considered reasonable by Empire and our management
team, are inherently uncertain. Factors that may cause actual
results to differ materially from current expectations include,
among others, levels of spending in business and leisure segments
as well as consumer confidence; changes in the competitive
environment in the gaming industry and the markets where we
operate; the extent to which New York State legalizes
sports betting in the wake of the Supreme
Court's decision regarding the Professional and Amateur Sports
Protection Act, the effects of new laws and regulations, Empire's
ability to successfully execute on the Sports Wagering Agreement;
the ability to meet and maintain compliance with legal and
regulatory restrictions on our business, including in relation to
our advertising, customer promotion and marketing activities;
recognition of and loyalty to the Resorts World Catskills and
bet365 brands; customer preference for competing hospitality and
gaming brands operating in our market; and other factors described
from time to time in Empire’s filings with the Securities and
Exchange Commission. We caution you not to place undue reliance on
any forward-looking statements, which are made as of the date of
this press release. We undertake no obligation to update publicly
any of these forward-looking statements to reflect actual results,
new information or future events, changes in assumptions or changes
in other factors affecting forward-looking statements, except to
the extent required by applicable laws. If we update one or more
forward-looking statements, no inference should be drawn that we
will make additional updates with respect to those or other
forward-looking statements.
1 Eilers & Krejcik Gaming, LLC, “Regulated Sports Betting:
Defining the U.S. Opportunity,” September 26, 2017
View source
version on businesswire.com: https://www.businesswire.com/news/home/20181114005167/en/
Media Inquiries:Elevate CommunicationsJennifer Hunt,
978-618-2804jhunt@elevatecom.comorInvestor Relations:ReevemarkHugh
Burns/Renee Soto, 212-433-4600EmpireResorts@reevemark.com
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