Accel to acquire Illinois' FanDuel Sportsbook & Horse Racing, with plans for new casino

Illinois-based Accel Entertainment has entered into an agreement to acquire Fairmount Holdings, owner of FanDuel Sportsbook & Horse Racing in Collinsville, Illinois, for about $35 million. The deal will be paid in 3.45 million shares of Accel Class A-1 common stock, based on a 20-day trailing average.

The acquisition, announced on Monday, "extends Accel’s convenience gaming expertise to a larger, more concentrated venue," according to a press release. The property is the only active horse racing venue in greater St. Louis.

Fairmount generated $29 million in revenue for the year ending December 31, 2023, with modest Adjusted EBITDA. Accel plans to invest an additional $85 - $95 million to fund temporary and permanent casino construction and track improvements. The five-year forecast suggests an Adjusted EBITDA potential of $20 to $25 million with over 75% free cash flow conversion.

“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,” said Andy Rubenstein, Accel co-founder, President, CEO, and Director. Rubenstein also expressed gratitude to Collinsville Mayor Jeff Stehman and various state representatives and senators for their support.

Mayor Jeff Stehman of Collinsville praised the acquisition, highlighting its potential to spur economic development and job creation along the Collinsville road corridor. "This move is a testament to the vitality and potential of Collinsville," he said.

The strategic acquisition of Fairmount, which includes 65 race days and about 435 horse races annually, aligns with Accel's goal of expanding its local gaming footprint. The deal also grants Accel an Organization Gaming License to offer casino gaming positions and a partnership with FanDuel for sports wagering in Illinois.

The company has engaged RRC Gaming Management LLC for casino development and operations. With this acquisition, Accel continues to build on its distributed, route-based platform, adding a single-site racetrack and future casino asset in the greater St. Louis/ southern Illinois market.