Accel Entertainment has completed its acquisition of Fairmount Holdings, owner of the FanDuel Sportsbook & Racetrack in Illinois.
The acquisition gives Accel the only active horse racing venue in the greater St. Louis metropolitan area, as well as a master sports betting license and the opportunity to develop a legislatively authorized casino project.
The company has paid a consideration of approximately 3.45 million Accel Class A-1 common stock, equivalent to around $35 million.
Accel also plans to invest between $85 million and $95 million to fund the casino construction and for track investments.
“We are excited to close the acquisition of Fairmount and eager to refresh and revitalize an iconic racing and gaming asset,” said Accel co-founder, president and CEO Andy Rubenstein. “Our plan and timeline are ambitious and achievable, and we look forward to welcoming investors and visitors to our Phase I casino opening in Q2 2025.”
During 2023, Fairmount generated $29 million in revenue and modest adjusted EBITDA from the site’s existing sportsbook, racetrack and three off-track betting (OTB) locations.
Accel’s five-year forecast suggests an adjusted EBITDA potential of $20 million to $25 million and over 75 per cent free cash flow conversion.
Mark Phelan, Accel president of US gaming, commented: “Over the past few months, our team has been hard at work. We’ve hired a Casino General Manager, received approvals from both the Illinois Gaming Board and Illinois Racing Board and finalized design and development plans for the first phase of the casino.”
Shares in Accel Entertainment Inc (NYSE:ACEL) closed 0.33 per cent lower at $12.05 per share in New York Thursday.