Accel Entertainment, a leading distributed gaming operator in the United States, has entered into an agreement with Fairmount Holdings, the owner of FanDuel Sportsbook & Horse Racing, to acquire Fairmount for total consideration of approximately $35 million.
Accel will add a single-site racetrack and future casino, extending its convenience gaming expertise to a bigger horse racing venue in southern Illinois and the greater St. Louis area.
The racetrack will be active for 65 days with approximately 435 horse races per year. Plus, Accel can develop a casino project and utilize a master sports betting license in a revenue share agreement with FanDuel.
The ultimate goal of this acquisition is to build both temporary and permanent casino facilities while improving the horse racing experience for fans and participants.
Statements and strategy
“As a leading distributed gaming operator in the United States, 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,” Accel co-founder, President, CEO, and Director Andy Rubenstein said.
“I am delighted by Accel Entertainment’s purchase of FanDuel Sportsbook & Horse Racing,” said Mayor Jeff Stehman of Collinsville, IL. “This move is a testament to the vitality and potential of Collinsville. It will undoubtedly spur economic development along the Collinsville road corridor, creating jobs and bolstering our local economy. We look forward to the positive impact this acquisition will have on our city.”
“We couldn’t have found better partners than Andy and his team in this transaction, and we look forward to staying fully aligned on this journey as significant equity owners from here,” said William Stiritz. “We’ve long sought strategically aligned, well capitalized and proven operators in the local gaming space to realize the full potential of this sportsbook and racetrack, and Accel is the ideal fit,” Rob Vitale, CEO and Chairman of Post Holdings, commented.
With Accel’s experience scaling route-based gaming in other states such as Montana, Nevada, Nebraska, and Georgia, its expertise in player experience, service and cash logistics, commercial partnerships, as well as regulatory and procurement relationships, creates a seamless fit for extending route-based capabilities into a condensed site for locals in Collinsville.
In addition to the $35 million of equity consideration, Accel’s agreement also features $85-$95 million of expected casino build-out and track investments. By accessing a local gaming total addressable market, with estimates up to $15 billion, Accel’s return on investment looks strong moving forward, while keeping local gaming assets remaining under family and small business ownership.
