Delaware North has combined its route-gaming business in Illinois with Eureka Entertainment’s route-gaming business, Universal Gaming Group (UGG). The move was recently approved by the Illinois Gaming Board.
As a result of the transaction, Delaware North’s Gaming & Entertainment Management – Illinois LLC (GEM Gaming) has been combined with UGG to form Universal GEM Gaming LLC.
The new entity is jointly owned by Delaware North and Housatonic Partners, the private equity investment firm behind Eureka Entertainment, with Delaware North being the majority owner. Delaware North acquired GEM Gaming in 2016 from a private ownership group. Eureka Entertainment acquired UGG in 2018.
Universal GEM Gaming partners with restaurants, bars, veterans and fraternal organizations, and truck stops to provide onsite gaming to patrons. It is now the fourth-largest route-gaming operator in Illinois, the largest route-gaming market in the US, with approximately 2,500 Video Gaming Terminals (VGTs) supported by 125 employees statewide.
“The combined company distinguishes itself in the market through industry-leading service response, regulatory compliance, and regularly updated game options,” according to the parties. Universal GEM Gaming is being led by CEO Russell Poore, former CEO of UGG, with David Frame, former GM for GEM Gaming, serving as chief revenue officer.
“This was a very strategic move for Delaware North to strengthen our route-gaming business in Illinois by joining forces with a respected competitor in UGG,” said Brian Hansberry, Delaware North group president for gaming. “Universal GEM Gaming will continue to complement our traditional casino and interactive gaming portfolio.”
“The joint venture is well positioned for growth thanks to a complementary geographic footprint in the important market of Northern Illinois and the ability to leverage the best practices and capabilities of both Delaware North and UGG,” added Jason Gregorec, President of Delaware North’s gaming division.
“All of us at UGG are excited about this venture with Delaware North. It combines the best aspects of two pioneering VGT companies in Illinois, all under the leadership of a company that has deep capabilities and experience in gaming, operations, and marketing,” Poore said. “This venture will allow us to provide more value to game players, more effective service capabilities to our partner locations, and a better gaming experience overall.”
“We are pleased to join Delaware North in this joint venture,” added Housatonic Partners Managing Director Alex Dodd. “UGG and GEM Gaming both have a successful history in the market, thanks in part to their demonstrated commitment to doing things the right way. We look forward to the continued success of Universal GEM Gaming.”
Armory Securities acted as the exclusive financial advisor on the transaction. Jones Day served as legal counsel to Delaware North, and Greenberg Traurig served as regulatory counsel to Delaware North. Foley & Lardner served as legal counsel to UGG, and Fox Rothschild served as regulatory counsel.
Original article: https://www.yogonet.com/international/news/2025/03/17/98462-delaware-north-and-eureka-entertainment-combine-routegaming-operations
