The Fairmont transaction jibes with Accel\u2019s track record of bolt-on acquisitions that expand the buyer\u2019s route-based capabilities. With Fairmont, the suitor accomplishes while spreading its wings into another corner of the broader gaming industry.<\/p>\n
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Plus, there are geographic advantages with FanDuel Sportsbook & Horse Racing being the only horse racing property near the St. Louis area. Post-acquisition plans call for a temporary casino to be built at the site next year with a permanent brick-and-mortar casino to follow in 2027. Accel is expected to make a significant capital contribution to that project. The gaming venue will feature 500 machines, 24 tables, and a sportsbook.<\/p>\n<\/div>\n
\u201cThe transaction has two parts — acquisition of Fairmount, the holder of the license and owner of the underlying site assets, for approximately $35 million of equity consideration, and $85 – $95 million of expected casino build-out and track investments funded from Accel\u2019s credit facility,\u201d according to the statement.<\/p>\n
Accel is forecasting \u201cattractive return on capital\u201d via the transaction, which is scheduled to close in the fourth quarter<\/strong>.<\/p>\nDeal Could Provide Runway for Future Growth<\/h2>\n In aggregate, Illinois is one of the largest gaming markets in the country, but in Southern Illinois\/St. Louis area, there is fragmentation and many of the operators are smaller independents, indicating there\u2019s some room for consolidation. That could be to Accel\u2019s benefit.<\/p>\n
\u201cThis transaction accesses a \u2018local gaming\u2019 total addressable market (TAM) estimated to be approximately $15 billion in size — or more than twice our existing route-based TAM,\u201d according to the company. \u201cLocal gaming assets remain largely unconsolidated, under family or small business ownership, and far less often contested by larger gaming players.\u201d<\/strong><\/p>\nAccel did not mention if the casino would bear the FanDuel — one of the most valuable<\/a> in the gaming industry — but is attached to another casino in Illinois.<\/p>\n","protected":false},"excerpt":{"rendered":"Accel Entertainment (NYSE: ACEL) announced the acquisition of Fairmont Holdings for $35 million in equity, adding a horse racetrack to the video gaming terminal (VGT) firm\u2019s portfolio of assets. Privately held Fairmont owns FanDuel Sportsbook & Horse Racing in Collinsville, Ill. The venue has 65 live race days and 435 horse races per year. The […]<\/p>\n","protected":false},"author":46,"featured_media":325375,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,32093,86430,86438],"tags":[81903,81966,86455,86457],"acf":[],"yoast_head":"\n
Accel Entertainment Buys Fairmont Holdings for $35M in Stock<\/title>\n \n \n \n \n \n \n \n \n \n \n \n \n\t \n\t \n\t \n \n \n \n \n \n\t \n\t \n\t \n