J&J Gaming has completed its acquisition of Nevada-based Leisure Gaming, significantly expanding its footprint in the distributed gaming industry. The deal, which adds 10 truck-stop casinos to J&J’s portfolio, was finalized after receiving approval from the Nevada Gaming Commission in November. This marks a strategic move for the Illinois-headquartered company as it strengthens its national operations.
A Strategic Move in Distributed Gaming
With the addition of Leisure Gaming, J&J Gaming now manages more than 11,000 gaming terminals across Nevada and Montana. These terminals serve 3,600 locations nationwide, spanning restaurants, bars, taverns, convenience stores, and truck stops. Leisure Gaming’s nonrestricted casinos are set to complement this expansive portfolio, focusing on locations with heavy traffic, particularly truck stops.
J&J Gaming’s CEO, Robert Willenborg, highlighted the importance of this acquisition. “This deal enhances our ability to deliver exceptional service to both local and national customers,” he stated. By integrating Leisure Gaming’s properties into its existing platform, J&J aims to create a seamless gaming experience while expanding its market influence.
The Role of Golden Route Operations
Golden Route Operations (GRO), a subsidiary of J&J Gaming, will oversee the integration of Leisure Gaming’s casino operations. GRO has been instrumental in J&J’s expansion strategy, including its acquisition of distributed gaming businesses in Montana earlier in 2023. The addition of Leisure Gaming’s properties aligns with GRO’s mission to provide diverse gaming options to its clientele.
- Key Facts About Golden Route Operations:
- Manages distributed gaming across multiple states.
- Focuses on creating efficient, scalable operations.
- Recently expanded its Montana presence with significant acquisitions.
This latest move solidifies GRO’s position as a leader in distributed gaming, with properties that cater to a broad spectrum of customers.
Leisure Gaming: A Legacy in Nevada Gaming
Leisure Gaming has been a fixture in Nevada’s gaming scene since 1993, when it launched its Pilot Casino in Fernley. Over the years, the company has expanded to include nine additional properties, operating more than 640 slot machines. These casinos are strategically located to serve both local residents and travelers.
Ryan Albright, Leisure Gaming’s Vice President of Operations, expressed optimism about the acquisition. “Partnering with J&J Gaming opens up new opportunities for growth and innovation,” he said. The backing of an industry leader like J&J ensures a strong future for Leisure Gaming’s properties and team members.
The Role of Oaktree Capital Management
Oaktree Capital Management, the private equity firm that holds a majority stake in J&J Gaming, has been a driving force behind the company’s expansion. Based in Southern California, Oaktree has invested heavily in J&J’s growth, including recent acquisitions and property upgrades.
In addition to its stake in J&J Gaming, Oaktree owns other Nevada-based properties, such as the Casablanca Resort and Virgin River Hotel & Casino in Mesquite. These properties have seen substantial renovations, with millions spent on slot machine upgrades and casino floor redesigns. Oaktree’s investment strategy demonstrates a commitment to enhancing the customer experience while maximizing profitability.
Industry Implications
The acquisition of Leisure Gaming is a significant development for the distributed gaming industry. By focusing on truck-stop casinos, J&J Gaming is tapping into a niche market with high potential for growth. These locations, often frequented by long-haul drivers and travelers, represent a steady stream of customers seeking entertainment on the go.
This deal also underscores the growing trend of consolidation in the gaming industry. As larger players like J&J Gaming continue to acquire regional operators, the landscape is becoming increasingly competitive. For smaller operators, partnerships or acquisitions may be the key to staying viable in a rapidly changing market.
Notable Highlights:
- J&J Gaming now oversees 11,000 gaming terminals across the U.S.
- Leisure Gaming brings 10 truck-stop casinos with over 640 slot machines into the fold.
- The acquisition reflects J&J’s strategy to diversify and scale its operations.
As the gaming industry continues to evolve, J&J Gaming’s focus on strategic acquisitions positions it as a dominant player. With the support of Oaktree Capital Management, the company is poised for sustained growth and innovation.
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