Two US regional casino operators in newly legalized sports betting states have agreed to merge their operations.

On Sunday, Delaware-based Dover Downs Gaming & Entertainment Inc and Rhode Island-based Twin River Worldwide Holdings Inc announced that they’d entered into a definitive merger agreement. The deal will transform the privately-held Twin River into a publicly traded company via a listing on the Nasdaq or New York Stock Exchange.

The deal’s terms involve Dover Downs stockholders to exchange their shares for Twin River common shares equaling 7.225% of the equity of the combined company. Each Dover Downs share will be exchanged for 0.0225 shares of Twin River stock.

Dover Downs operates the Hotel & Casino of the same name in Delaware, which has recorded annual operating losses in two of the last four years. Dover Downs CEO Denis McGlynn said the Twin River deal would be “transformational” via the creation of a “more stable, standalone entity” that will allow for greater investment in its facilities.