Empire Resorts and an affiliate of bet365 Group have announced a strategic alliance to develop a physical and online sportsbook in New York state at Resorts World Catskills.

This is New York’s newest and largest integrated commercial casino resort destination with the closest proximity to Manhattan. Empire and an affiliate of bet365, the world’s largest online sports bookmaker, entered into a 20-year agreement to offer retail sports betting, an online sportsbook and online gaming at the venue.

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 agreement, an affiliate of bet365 will acquire up to $50m 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, Empire’s largest stockholder, has committed to purchase up to $126m 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.