Accel Entertainment has finalized its acquisition of Fairmount Holdings, the owner of the FanDuel Sportsbook & Racetrack in Collinsville, Illinois. The $3.45 million stock-based transaction expands Accel’s presence in the local gaming market, incorporating Illinois’ only horse racing venue near the St. Louis metropolitan area.
The deal includes the racetrack’s Organization Gaming License, enabling casino gaming positions and a partnership with FanDuel for sports wagering in Illinois. The company eyes the opening of the first phase of a planned casino by next year.
The acquisition marks a significant move for Accel, traditionally a leader in distributed, route-based gaming. By acquiring a centralized, single-site gaming venue, the company broadens its operational mode.
Fairmount’s assets include:
- A live racetrack hosting 55 annual race days.
- A planned casino project, with construction divided into two phases.
- A master sports betting license tied to a revenue-sharing agreement with FanDuel.
Andy Rubenstein, Accel co-founder, President, CEO, and Director, said: “We are excited to close the acquisition of Fairmount and eager to refresh and revitalize an iconic racing and gaming asset.”
Accel plans to invest $85–95 million in the project, covering casino construction and track enhancements. The company forecasts an adjusted EBITDA of $20–25 million within five years, with a robust free cash flow conversion of over 75%.
Phase I of the planned casino, set to open in Q2 2025, will include expanded food and beverage offerings, live entertainment, and improved amenities for racing enthusiasts.
Mark Phelan, Accel’s President of U.S. Gaming, confirmed that the company has already appointed a Casino General Manager, received regulatory approvals, and completed design plans.
The acquisition positions Accel to tap into the $15 billion locals gaming market, characterized by fragmented ownership and limited competition from major gaming operators.
Fairmount generated $29 million in revenue for 2023, driven by its sportsbook, racetrack, and three off-track betting locations. Accel views the acquisition as a springboard for further consolidation in the sector.
The transaction received unanimous approval from the boards of both companies, along with shareholders of Fairmount Holdings. Wells Fargo acted as financial advisor, while Lewis Rice LLC provided legal counsel to Fairmount.
Original article: https://www.yogonet.com/international/news/2024/12/03/87360-illinois-accel-completes-acquisition-of-fanduel-sportsbook-racetrack-owner-fairmount-holdings
