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The acquisition of Fairmount Holdings, the proprietor of the Fairmount Park racetrack and the FanDuel sportsbook in Collinsville, Illinois, has been completed by Accel Entertainment. Originally announced on July 15, 2024, the acquisition was finalized on December 2, when Accel paid $35 million, or 3.45 million shares of Accel Entertainment stock, to acquire Fairmount.
This acquisition marks a significant step for Accel Entertainment, which plans to use the newly acquired assets to enhance the gaming and racing experiences. According to Accel’s Co-Founder, CEO, and President, Andy Rubenstein, “We are excited to close the acquisition of Fairmount and eager to refresh and revitalize an iconic racing and gaming asset.” Rubenstein added that the company’s plan to build Phase I and Phase II of the casino facilities is ambitious, with the first phase expected to open in Q2 of 2025.
Accel has committed to investing between $85 million and $95 million to fund both temporary and permanent casino construction. Additionally, Accel plans to make significant upgrades to the racetrack. With the new developments, the company forecasts an adjusted EBITDA potential of $20 million to $25 million and anticipates over 75% free cash flow conversion over the next five years.
Mark Phelan, President of US Gaming at Accel, also shared his thoughts on the successful acquisition: “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.”
Fairmount Holdings is one of only two active racetracks in Illinois and holds a significant position in the southern Illinois and greater St. Louis market. This acquisition strengthens Accel’s presence in the region and sets the stage for long-term growth in both the gaming and racing sectors.
Accel’s strategic investment into Fairmount will not only modernize the racetrack but also bring more gaming options to the area, benefiting both local investors and visitors alike.