Accel Entertainment, a leading distributed gaming operator, has announced a landmark acquisition of Fairmount Holdings, the owner of FanDuel Sportsbook & Horse Racing. This $35 million deal, paid in 3.45 million ACEL shares, marks a significant expansion for Accel in the local gaming market, integrating the only active horseracing venue in the greater St. Louis area.
Accel Entertainment Expands Footprint with $35M Acquisition of Fairmount Holdings
Strategic Expansion in Local Gaming Market
The acquisition includes an Organisation Gaming Licence, enabling Accel to offer casino gaming and sports wagering through its established partnership with FanDuel. This move strategically positions Accel to enhance its local gaming presence by incorporating a single-site racetrack that hosts 65 race days and approximately 435 horse races annually.
Plans for Comprehensive Gaming and Entertainment Venue
The deal presents a unique opportunity for Accel to develop a legislatively authorised casino project. The company plans to invest an additional $85-$95 million to build temporary and permanent casino facilities, improve the horse racing experience, and enhance food and beverage amenities. This investment underscores Accel’s commitment to creating a comprehensive gaming and entertainment venue that will attract a diverse range of patrons.
Leadership and Community Support
Accel’s President, CEO, and Director, Andy Rubenstein, expressed his enthusiasm for the acquisition: “We are excited to partner with ‘Hall of Fame’ value creators Bill Stiritz and Rob Vitale to deploy our local gaming expertise in this promising sportsbook, racetrack, and future casino. We’re also deeply grateful to Mayor Jeff Stehman of Collinsville, state representatives Jay Hoffman (113th District) and Katie Stuart (112th District), state senator Chris Belt (57th District), the Illinois Gaming Board, and the Illinois Racing Board for their support of this opportunity to reinvest and support job creation in the southern Illinois and greater St. Louis community.”
Rubenstein also highlighted the historical significance of Fairmount Park: “We are excited to be a part of an almost 100-year-old southern Illinois institution in Fairmount Park and support the Illinois agriculture and equine industries.”
Closing Timeline and Regulatory Approvals
The transaction is anticipated to close in the fourth quarter of 2024, pending customary approvals from the Illinois Racing Board and the Illinois Gaming Board. This timeline ensures that all regulatory requirements are met, allowing Accel to seamlessly integrate Fairmount Holdings into its operations.
Conclusion: The Acquisition
Accel Entertainment’s acquisition of Fairmount Holdings is a strategic move to broaden its reach in the local gaming market. By leveraging its partnership with FanDuel and investing significantly in the development of comprehensive gaming and entertainment facilities, Accel is poised to enhance its market presence and contribute to the economic growth of the southern Illinois and greater St. Louis community. This acquisition not only solidifies Accel’s position in the gaming industry but also underscores its commitment to supporting local industries and job creation.
FAQs About Accel Entertainment’s Acquisition of Fairmount Holdings
1. What is the significance of Accel Entertainment’s acquisition of Fairmount Holdings?
The acquisition of Fairmount Holdings, the owner of FanDuel Sportsbook & Horse Racing, marks a significant expansion for Accel Entertainment in the local gaming market. It integrates the only active horseracing venue in the greater St. Louis area and enables Accel to offer casino gaming and sports wagering through its partnership with FanDuel.
2. How much is the acquisition deal worth, and how is it being paid?
The deal is valued at $35 million, which is being paid in 3.45 million ACEL shares.
3. What are the key components of this acquisition?
The acquisition includes an Organisation Gaming Licence, allowing Accel to offer casino gaming and sports wagering. It also encompasses a single-site racetrack that hosts 65 race days and approximately 435 horse races annually.
4. What are Accel Entertainment’s plans for the newly acquired property?
Accel plans to invest an additional $85-$95 million to develop temporary and permanent casino facilities, improve the horse racing experience, and enhance food and beverage amenities. The goal is to create a comprehensive gaming and entertainment venue.
5. What did Accel’s President and CEO, Andy Rubenstein, say about the acquisition?
Andy Rubenstein expressed excitement about partnering with Bill Stiritz and Rob Vitale to deploy Accel’s local gaming expertise in the sportsbook, racetrack, and future casino. He also thanked local officials and regulatory boards for their support and highlighted the importance of Fairmount Park in supporting the Illinois agriculture and equine industries.
6. When is the transaction expected to close?
The transaction is expected to close in the fourth quarter of 2024, pending customary approvals from the Illinois Racing Board and the Illinois Gaming Board.
7. What opportunities does this acquisition present for Accel Entertainment?
The acquisition provides an opportunity for Accel to develop a legislatively authorised casino project, expand its local gaming footprint, and contribute to economic growth and job creation in the southern Illinois and greater St. Louis community.
8. Who are the notable partners and supporters mentioned in the acquisition?
Accel is partnering with “Hall of Fame” value creators Bill Stiritz and Rob Vitale. Key supporters include Mayor Jeff Stehman of Collinsville, state representatives Jay Hoffman (113th District) and Katie Stuart (112th District), state senator Chris Belt (57th District), the Illinois Gaming Board, and the Illinois Racing Board.
9. How does this acquisition benefit the local community?
The acquisition supports job creation and economic growth in the southern Illinois and greater St. Louis community. It also bolsters the local agriculture and equine industries by enhancing the horse racing experience and developing comprehensive gaming facilities.
