Accel Entertainment acquired Fairmount Holdings, Inc. (Fairmount Park / FanDuel Sportsbook & Racetrack) for approximately $35 million (3.45 million ACEL Class A-1 shares, based on a 20-day trailing average), a transaction completed in December 2024, structured as all stock.
Fairmount Holdings, Inc. (Fairmount Park / FanDuel Sportsbook & Racetrack) operates in Local gaming — single-site racetrack, casino license and sports betting, is based in Collinsville, Illinois (greater St. Louis metropolitan area), had revenue of about $29 million of revenue and modest Adjusted EBITDA in the year ended December 31, 2023 (per closing release). Accel acquired Fairmount Holdings, Inc. and its subsidiary Fairmount Park, Inc. — owner of the FanDuel Sportsbook & Racetrack in Collinsville, Illinois — for total consideration of approximately $35 million, paid as 3.45 million shares of Accel Class A-1 common stock, from co-owners William Stiritz (former CEO of Post Holdings and Ralston Purina) and Robert Vitale (CEO and Chairman of Post Holdings). Fairmount is the only active horse racing venue in the greater St. Louis / southern Illinois market and one of two in Illinois; the asset includes an Organization Gaming License to offer casino positions and a master sports-betting license used in a revenue-share partnership with FanDuel. Announced July 15, 2024, the deal closed December 2, 2024. Accel plans to invest $85-95 million to build Phase I and Phase II casino facilities. The transaction was Accel's first move into single-site 'Local Gaming' assets, complementing its route-based footprint.
A first move into single-site Local Gaming assets — lower capex and competitive intensity than casinos — extending Accel's convenience-gaming expertise to a larger, more concentrated venue adjacent to its route-based platform.
The only active horse racing venue in greater St. Louis, carrying a casino Organization Gaming License and a master sports-betting license with FanDuel — a scarce, single-site local gaming asset. Five-year forecast of $20-25 million Adjusted EBITDA potential with over 75% free-cash-flow conversion once Phase I/II casino facilities are built ($85-95 million planned investment). Operated as a single-site Local Gaming asset; casino development and operations run with RRC Gaming Management LLC (Tony Rodio, former Caesars CEO; Holly Gagnon, HGC Gaming Hospitality).
I am happy to report that we delivered another strong quarter and are making substantial progress closing our acquisition of FanDuel Sportsbook & Horse Racing, a natural extension of our convenient, local gaming platform.Andy Rubenstein, CEO, Accel Entertainment
Advisory firms were not disclosed for this transaction.