A deal for Bet365 New York sports betting has been reached between the UK-based online gaming giant and Empire Resorts.

The deal will lead to the two setting up online and live sports betting at the Resorts World Catskills casino in New York state.

Sports betting has not yet started in New York, but the enabling law is on the books and the casinos are getting ready to go.

The partnership is a “strategic alliance” that involves substantial new investment.

As an indication of the long-term commitment, bet365 will buy up to $50 million of Empire Resorts shares in two tranches. The price of $20 a share is a substantial premium to the current price of $12.48.

Following the share purchase, bet365 will be Empire’s second largest shareholder. Empire’s largest shareholder is Kien Huat Realty III, Ltd. (“Kien Huat”).

As part of the deal, Kien Huat will buy up to $126 million of convertible preferred stock. Not only is this a vote of confidence in the potential for New York sports betting, it means that the project will be well funded from the start.

After start-up costs are recouped, Empire Resorts and bet365 will split profits 50/50. You can read more about Bet365 New York sports betting at Play USA.