Century Casinos announced on Tuesday that its flagship gaming establishment in Cape Girardeau, Mo., signed what the operator termed a "long-term" agreement with BetMGM.
According to the agreement, Century will lease one of its online sports betting skins in Missouri to BetMGM. The financial details of the agreement were not revealed. The state plans to distribute sports betting licenses on December 1.
"The agreement includes a percentage of net gaming revenue payable to Century, with a guaranteed minimum, as well as retail sportsbook options to be exercised at Century’s discretion,” according to a statement issued by Century. “The agreement is contingent on obtaining all necessary gaming licenses and regulatory approvals.”
Besides the Cape Girardeau location, Century operates a casino in Caruthersville, Mo. Those assets were obtained from the firm formerly named Eldorado Resorts. It was included in that company's strategy to divest from a few smaller locations before acquiring Caesars Entertainment. The Mountaineer Casino Racetrack and Resort in West Virginia, along with those gaming properties, were part of a single transaction.
Century Agreement a Victory for BetMGM
Missouri's sports betting rules necessitated a partnership like the one with Century for BetMGM, since MGM Resorts International, which owns 50% of the online betting company, does not operate a physical gaming facility in the state.
The Show Me State plans to issue 14 online sports betting licenses. Six will be distributed to casino operators within the state, while another six will be allocated to professional sports teams. It is generally anticipated that two unrestricted licenses will be awarded to FanDuel and DraftKings – the two biggest online sportsbooks in the US.
It’s not certain that FanDuel will require one of those permits because Boyd Gaming, which operates two Ameristar casinos in Missouri, owns 5% of it.
Bally’s, Caesars Entertainment, and Penn Entertainment, the parent company of ESPN Bet, all operate gaming establishments in the state and are expected to secure three of the six licenses that regulators will grant to casino operators.
Sports Wagering Agreements Might Enhance Century
During the company's first-quarter earnings conference call earlier this month, Century co-CEO Peter Hoetzinger stated that sports betting agreements in Missouri "are expected to generate additional high-margin earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs (EBITDAR) for our venues."
Century specializes in managing regional casinos and has a track record of forming partnerships with sportsbook operators in different states to utilize its iGaming and sports betting platforms. In 2021, Century finalized deals with Rush Street Interactive and William Hill to enable those operators to launch online casinos in West Virginia utilizing the Mountaineer Casino, Racetrack & Resort’s license.
Last year, Century reached an arrangement with Circa Sports, located in Las Vegas, allowing the sportsbook to enter Colorado through Century’s Cripple Creek casino license
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