Accel Entertainment, a prominent player in the distributed gaming sector, recently announced a significant move to bolster its presence in the local gaming market. The acquisition of Fairmount Holdings, owner of FanDuel Sportsbook & Horse Racing in Collinsville, Illinois, represents a strategic investment aimed at expanding Accel’s foothold in the greater St. Louis area. This $35 million deal, structured with 3.45 million ACEL shares, not only secures a pivotal position in the local gaming landscape but also includes key assets like an Organizational Gaming License, pivotal for the future development of casino gaming and sports wagering through its partnership with FanDuel.
Strategic Expansion and Local Impact
Accel’s acquisition strategy is multifaceted, aiming to capitalize on Fairmount Holdings’ unique strengths. The venue boasts the only active horseracing track in the greater St. Louis area, hosting approximately 65 race days annually, totaling around 435 horse races. This acquisition not only solidifies Accel’s local gaming footprint but also presents opportunities for future growth, including a planned casino project that could transform the site into a comprehensive gaming and entertainment destination.
Financial Commitments and Development Plans
Beyond the initial acquisition cost, Accel plans to invest an additional $85-$95 million to enhance facilities. This investment will cover the development of both temporary and permanent casino structures, improvements to the horseracing facilities, and upgrades to food and beverage amenities. Such developments are poised not only to elevate the local entertainment offerings but also to significantly contribute to job creation and economic stimulus in southern Illinois and the broader St. Louis community.
Stakeholder Support and Regulatory Approvals
Accel Entertainment acknowledges the critical support received from various stakeholders, including local government officials such as Mayor Jeff Stehman of Collinsville and state representatives Jay Hoffman and Katie Stuart, along with State Senator Chris Belt. The approval process for the acquisition is pending customary reviews from the Illinois Racing Board and the Illinois Gaming Board, with expectations to finalize the transaction by the fourth quarter of 2024.
Vision for the Future
Commenting on the acquisition, Accel’s President, CEO, and Director, Andy Rubenstein, expressed enthusiasm about partnering with industry veterans Bill Stiritz and Rob Vitale. He highlighted the company’s commitment to leveraging its expertise to enhance the sportsbook, racetrack, and future casino offerings. Rubenstein also emphasized Accel’s dedication to supporting local institutions like Fairmount Park, which has served as a cornerstone of southern Illinois culture for nearly a century. This strategic alignment not only underscores Accel’s business objectives but also underscores its commitment to supporting Illinois’ agriculture and equine industries.
Accel Entertainment’s acquisition of Fairmount Holdings marks a pivotal moment in the company’s expansion strategy, positioning itself at the forefront of the local gaming market. With ambitious plans to develop a comprehensive gaming and entertainment venue, Accel aims not only to enhance its commercial footprint but also to contribute meaningfully to the local economy and community. As regulatory approvals progress, Accel looks forward to realizing its vision of transforming Fairmount Park into a premier destination for gaming, sports wagering, and entertainment in southern Illinois and the greater St. Louis area.