Accel Positions Itself For Future Illinois iGaming License With Fairmount Deal
The deal positions Accel to participate in Illinois iCasinos should they become legal, something VGT stakeholders have opposed for years.
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The agreement this week between video gaming terminal (VGT) operator Accel Entertainment and Fairmount Holdings, owner of FanDuel Sportsbook & Horse Racing in Collinsville, Illinois, could bring about more than a new racino to Fairmount Racetrack.
It also positions an influential VGT stakeholder in Illinois to participate in Illinois online casinos should they become legal, something Accel and other VGT stakeholders have staunchly opposed for years.
Accel, the largest terminal operator in the U.S. and in Illinois, announced it was buying Fairmount Holdings from co-owners William Stiritz, the former CEO of Post Holdings, and Robert Vitale, the current CEO and chairman of Post Holdings, in a stock deal worth about $35 million. The deal includes:
- The only horse racing venue in the St. Louis area;
- A gaming license to offer casino gaming positions;
- A partnership with FanDuel to participate in Illinois sports betting and, possibly, online casinos.
“As a leading distributed gaming operator in the United States, we are excited to partner with ‘Hall of Fame’ value creators Bill Stiritz and Rob Vitale to deploy our local gaming expertise in this promising sportsbook, racetrack, and future casino,” said Andy Rubenstein, Accel’s co-founder, president, CEO, and director.
Details of the deal
Stiritz and Vitale will get 3.45 million shares of Accel stock as part of the agreement.
“We’ve long sought strategically aligned, well capitalized, and proven operators in the local gaming space to realize the full potential of this sportsbook and racetrack, and Accel is the ideal fit,” Vitale said.
Rubenstein said Accel owns and operates about 25,000 regulated electronic gaming machines in about 4,000 retail partner locations across seven states. In Illinois, Accel operates terminals in 2,871 locations.
Accel plans to invest $85 million to $95 million to build a temporary and permanent casino and make some track improvements. The temporary facility should open in mid-2025, and the permanent facility is planned to open mid- to late-2027, Accel Entertainment President of U.S. Gaming Mark Phelan said.
The temporary casino will have 200 slot machines and four to six table games, Phelan said. The permanent casino will include 500 slot machines, 24 table games, and a FanDuel Sportsbook, he said.
Accel will need Illinois Racing Board and Illinois Gaming Board approval to operate a casino.
What does the sale mean for iGaming?
Legislation filed in the past to legalize online casinos in Illinois would allow casino and racetrack licensees to apply for internet gambling licenses.
Those bills have been opposed by the state’s VGT industry — terminal operators and retail establishments — for fear of cannibalization. VGT stakeholders do not want online casinos to cut into their revenue.
By purchasing Fairmount, Accel would be in line to apply for an iGaming license in Illinois based on how previous bills have been written.
“The big deal is that ownership of a racetrack casino opens the door for the possibility of an iGaming license,” mobile gambling analyst and longtime Illinois lobbyist Steve Brubaker said. “It seems reasonable to assume that Accel’s reason for buying Fairmount is a future internet gambling license.”
Illinois state Sen. Cristina Castro (SB1656) and state Rep. Edgar Gonzalez Jr. (HB2239), both Democrats, filed online casino bills in 2024 that never received a committee hearing. Castro told Casino Reports she wanted to continue conversations with VGT stakeholders to get legislation passed. Gonzalez told Poker Industry PRO he plans to file another online casino bill in 2025.
