Accel Entertainment, a major player in the US gambling industry, has struck a deal to acquire Fairmount Holdings, the owner of FanDuel Sportsbook & Horse Racing in Collinsville, Illinois. This move expands Accel’s presence in the state and signifies their commitment to the growing sports betting market.
$35 Million Deal Includes Stock and Future Investment
The agreement involves a $35 million payout to Fairmount, with Accel issuing 3.45 million shares of their common stock. However, Accel’s investment goes beyond the initial purchase price. They plan to inject an additional $85-95 million into the property, constructing a temporary casino followed by a permanent one. Upgrades to the existing racetrack are also on the agenda.
Expected Benefits: Growth for Accel, Boost for Local Economy
Accel anticipates this acquisition will accelerate their financial growth. The new assets are seen as a “cornerstone” for a local gaming platform, leveraging Accel’s expertise as a leader in the distributed gaming market.
Local officials are also optimistic about the deal. Mayor Jeff Stehman of Collinsville believes this move will bring significant economic benefits, including job creation and a boost to the city’s overall economy.
Accel CEO Highlights Commitment to Community
Andy Rubenstein, CEO of Accel Entertainment, expressed excitement about partnering with Fairmount and creating a premier destination for gaming, sports betting, and horse racing enthusiasts. He also emphasized their commitment to supporting the local community and the Illinois agriculture and equine industries.
Deal Expected to Close by Q4 2024
With the agreement receiving approval from both parties, the acquisition is expected to finalize in the fourth quarter of 2024. This move comes on the heels of Accel securing a license in Nevada, further solidifying their position as a major player in the ever-evolving gambling landscape.
Key Takeaways
- Accel Entertainment acquires FanDuel Sportsbook & Horse Racing in Illinois for $35 million.
- The deal includes future investment in a temporary and permanent casino, along with racetrack improvements.
- Accel expects financial growth and local officials anticipate economic benefits.
- Acquisition expected to close in Q4 2024.
