Nevada’s two largest slot machine route operators sold their businesses to companies headquartered in Illinois.
The move showed the growing interest Illinois companies have in slot machine routes. The Midwest state has more than 47,000 slot machinelike video lottery terminals in 8,464 locations.
J&J Gaming and Accel control a majority of Nevada’s 19,280 slot machines that are operated in 2,043 locations. Both J&J and Accel have been seeking slot machine route expansion opportunities outside of Illinois.
Nevada does not provide a revenue breakdown from restricted gaming — bars, taverns, supermarkets, convenience stores and other businesses with 15 or fewer games — which is taxed through quarterly and annual fees per slot machine.
J&J closed its acquisition of Las Vegas-based Golden’s Nevada slot route business last week, paying a total of $251 million. In September, J&J paid $114 million for Golden’s Montana slot operations.
In 2022, Accel acquired Montana-based Century Gaming, Golden’s chief rival in both states, for $164 million.
J&J, which is majority-owned by Oaktree Capital Management, said the addition of Nevada gave the company slot machine route operations in five states. Route operators manage the slot machines through either a space lease or a revenue-sharing agreement. The companies also provide the technology and platforms for player loyalty programs.
Golden owns nine casinos in Nevada, including The STRAT Hotel, Casino & SkyPod. J&J will manage the gaming operations of the company’s more than 60 Nevada taverns, operated under the PT’s, Sierra Gold and other brands, under a five-year agreement.
