Eldorado Resorts Completes Transaction with William Hill US to Bring Sports Wagering to Company’s National
Casino Portfolio
Eldorado Receives $50 Million Equity Stake in William Hill PLC and 20% of William Hill US as William Hill US
Secures Role as Eldorado’s Sports Wagering Service Provider
Eldorado Resorts, Inc. (NASDAQ: ERI) (“Eldorado” or the “Company”) announced today that it completed its previously announced
transaction with William Hill PLC (LON: WMH) whereby William Hill US will serve as Eldorado’s sports betting operator for a period
of 25 years at its properties in jurisdictions where sports betting is legal.
Pursuant to the terms of the agreement, Eldorado received a 20% equity stake in William Hill US as well as 13.4 million ordinary
shares of William Hill PLC (LON: WMH). Eldorado also secured the right to monetize its equity in William Hill US in the event
William Hill US completes a public offering 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 Resorts’ Chief Executive Officer, Tom Reeg, commented, “Extending our long-term relationship with William Hill partners
Eldorado with the world’s leading provider of in-casino, mobile and online sports wagering to launch sports wagering across our
current platform of 26 properties at such time as legislation is enacted and regulatory approvals are obtained. Based on our
long-term experience in Reno, we believe that the addition of sports wagering to our entertainment offerings will drive customer
visitation and create a new revenue stream at our properties while enhancing our existing gaming and non-gaming revenue.
“Our ability to capitalize on the expected expansion of online betting and gaming is further enhanced by the 20-year definitive
agreement that we entered into with The Stars Group granting it the option to access our second skins for online sports wagering
and our third skins for real money online gaming and poker operations in the United States. In consideration for our partnership
with TSG, we received an upfront equity interest in TSG and, to the extent that TSG exercises its options as online gaming and
betting is legalized in various jurisdictions, we will receive a revenue share related to these verticals as well as potential
further equity consideration based on certain conditions.”
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 are expected
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. William Hill US has also secured the right to operate online sports
betting under the first skin and any third skin for such betting activity held by Eldorado and online real money casino gaming
under any second skin for such gaming activity held by Eldorado.
About Eldorado Resorts, Inc.
Eldorado Resorts is a leading casino entertainment company that owns and operates twenty seven properties in thirteen states,
including Colorado, Florida, Illinois, Indiana, Iowa, Louisiana, Mississippi, Missouri, Nevada, New Jersey, Ohio, Pennsylvania and
West Virginia. In aggregate, Eldorado’s properties feature more than 28,000 slot machines and VLTs and over 600 table games, and
over 12,500 hotel rooms. For more information, please visit
www.eldoradoresorts.com.
Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements
regarding our strategies, objectives and plans for future development or acquisitions of properties or operations, as well as
expectations, future operating results and other information that is not historical information. When used in this press release,
the terms or phrases such as “anticipates,” “believes,” “projects,” “plans,” “intends,” “expects,” “might,” “may,” “estimates,”
“could,” “should,” “would,” “will likely continue,” and variations of such words or similar expressions are intended to identify
forward-looking statements. Although our expectations, beliefs and projections are expressed in good faith and with what we believe
is a reasonable basis, there can be no assurance that these expectations, beliefs and projections will be realized. There are a
number of risks and uncertainties that could cause our actual results to differ materially from those expressed in the
forward-looking statements which are included elsewhere in this press release. Such risks, uncertainties and other important
factors include, but are not limited to the possibility that sports betting and online and mobile betting and gaming are not
approved in various jurisdictions, or, to the extent that such gaming activities are approved, the market for such gaming does not
develop as anticipated; and (b) and other risks and uncertainties described in our reports on Form 10-K, Form 10-Q and Form
8-K.
For Eldorado Resorts:
Thomas Reeg
Chief Executive Officer
Eldorado Resorts, Inc.
775/328-0112
investorrelations@eldoradoresorts.com
or
Joseph N. Jaffoni, James Leahy
JCIR
212/835-8500
eri@jcir.com
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