Accel Entertainment Announces the Successful Closure of Its Acquisition of Fairmount Holdings, Fairmount Park, Inc. D/b/a FanDuel Sportsbook & Racetrack in Collinsville, Illinois, Broadening Accel’s Reach Into the Locals Gaming Market
Summary
During the year ended December 31, 2023, Fairmount generated $29 million of revenue and modest Adjusted EBITDA from the site’s existing sportsbook, racetrack and 3 OTB locations. 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,” said Andy Rubenstein, Accel co-founder, President, CEO and Director. 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.” • Natural Adjacency • Accel’s organic and tuck-in M&A growth model has been proven over 14 years, scaling route-based gaming in Illinois, Louisiana, Montana, Nevada, Nebraska and Georgia • Accel has built a deep expertise in player experience, commercial partnerships, regulatory relationships and procurement • The acquisition of the FanDuel Sportsbook and Racetrack extends route-based capabilities to a convenient single site for locals • The casino Accel’s developing targets consumer segments adjacent to route-based gaming, owns the relationship with the player and leverages partner expertise in real estate development, food and beverage, and hospitality • Attractive Return Profile • The transaction has two parts – acquisition of Fairmount, the holder of the license and underlying site assets, for approximately 3.45 million shares of Accel Class A-1 common stock, and $85-95 million of expected casino build out and track investments funded from Accel’s revolver • Projections of five-year adjusted EBITDA and robust free cash flow conversion point to an attractive return on capital – in-line with existing Accel’s route-based footprint • Platform for Future Growth • This transaction accesses a ‘locals gaming’ total addressable market (“TAM”) estimated by Eilers & Krejcik to be ~$15 billion in size • Locals gaming assets remain largely unconsolidated, under family or small business ownership and far less often contested by larger gaming players The transaction has been approved by Accel’s Board of Directors, the Board of Directors and shareholders of Fairmount Holdings. Accel offers turnkey full-service gaming solutions to authorized non-casino locations such as bars, restaurants, convenience stores, truck stops, and fraternal and veteran establishments across the country. EBITDA, Free Cash Flow and Net Debt are non-GAAP financial measures and are key metrics used to monitor ongoing core operations.