Delaware North, a global leader in hospitality and food service and operator of regional destination casinos, recently acquired Gaming & Entertainment Management–Illinois LLC, the third largest video gaming terminal route operator in Illinois with 1,800 VGTs at 438 sites. Terms of the deal were not disclosed.
It’s Delaware North’s second major acquisition this year. In March, it acquired Ruby Seven Studios, a leading developer of social casino gaming applications. In April, Delaware North launched its own mobile and online social gaming platform, Lucky North.
Under Illinois law, route locations are limited to a maximum of five VGTs, with lower wagering limits and payouts than casinos. The industry has grown steadily since it was authorized in 2012. Existing casino operators have felt the impact, including Delaware North’s Jumer’s Casino & Hotel, but the total gaming revenue base has grown significantly.
Slot route revenue is evenly divided between the location owner, the VGT operator and the state; a portion of the state’s share goes to the local municipality.
Brian Hansberry, president of Delaware North’s gaming business, said, “The acquisition of GEM, which operates the equivalent of a large gaming venue but spread over the entire state, complements our traditional casino portfolio and positions us for growth in this emerging sector. GEM President Bill Nader and his management team bring great gaming and logistics experience and expertise in this sector that would have been difficult to develop in a start-up operation. With GEM we can leverage opportunities for expansion of route gaming to other states.”
Nader said, “Delaware North brings a wealth of talent and resources to GEM, and its global experience in gaming, sports, hospitality, food service and marketing will help propel GEM to the next level in the route industry. Being part of a family owned and associate-focused company with such a rich history is very exciting for our team and GEM is proud to be part of the Delaware North family.”
