Delaware North has merged its Illinois route-gaming operations with Universal Gaming Group to form Universal GEM Gaming LLC, positioning itself as a major player in the state's lucrative gaming market.

Target Company Overview

Delaware North, a prominent global hospitality and entertainment firm, has made significant strides in the gaming industry by announcing the merger of its Illinois route-gaming business with Eureka Entertainment's Universal Gaming Group (UGG). This strategic move has culminated in the establishment of Universal GEM Gaming LLC, a new entity formed under the approval of the Illinois Gaming Board.

The newly formed Universal GEM Gaming is a collaboration between Delaware North and Housatonic Partners, with Delaware North holding a majority stake. This venture follows Delaware North's acquisition of GEM Gaming in 2016 and Eureka Entertainment’s acquisition of UGG in 2018. The new company has positioned itself as the fourth-largest route-gaming operator in Illinois, a market notable for having the largest concentration of gaming activity in the United States.

Industry Overview in Illinois

Illinois boasts a robust gaming industry marked by its substantial market size and regulatory framework. As the leading route-gaming market in the United States, the state operates approximately 2,500 Video Gaming Terminals (VGTs) across div