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Delaware North combines GEM Gaming with another Illinois route gaming company

VOL 26 | ISSUE 12 | MARCH 24, 2025

Delaware North recently announced it has combined the company’s route-gaming business in Illinois with Eureka Entertainment’s route-gaming business, Universal Gaming Group (UGG).

As a result of the transaction, which was approved by the Illinois Gaming Board, Delaware North’s Gaming & Entertainment Management – Illinois LLC (GEM Gaming) has been combined with UGG to form Universal GEM Gaming LLC.

The new entity is jointly owned by Delaware North and Housatonic Partners, the private equity investment firm behind Eureka Entertainment, with Delaware North being the majority owner. Delaware North acquired GEM Gaming in 2016 from a private ownership group. Eureka Entertainment acquired UGG in 2018.

The new joint venture becomes the fourth-largest route-gaming operator in Illinois with approximately 2,500 video gaming terminals (VGTs) in restaurants, bars, veterans and fraternal organizations and truck stops, supported by 125 employees statewide. Illinois is the largest route-gaming market in the U.S.

Universal GEM Gaming is being led by CEO Russell Poore, former CEO of UGG, with David Frame, former general manager of GEM Gaming, serving as chief revenue officer.

“This was a very strategic move for Delaware North to strengthen our route-gaming business in Illinois by joining forces with a respected competitor in UGG,” said Brian Hansberry, Delaware North group president for Gaming. “Universal GEM Gaming will continue to complement our traditional casino and interactive gaming portfolio.”

“The joint venture is well positioned for growth, thanks to a complementary geographic footprint in the important market of Northern Illinois and the ability to leverage the best practices and capabilities of both Delaware North and UGG,” added Jason Gregorec, president of Delaware North’s Gaming division.

“All of us at UGG are excited about this venture with Delaware North,” Poore said. “This venture will allow us to provide more value to game players, more effective service capabilities to our partner locations and a better gaming experience overall.”

“UGG and GEM Gaming both have a successful history in the market, thanks in part to their demonstrated commitment to doing things the right way,” added Alex Dodd, Housatonic Partners managing director.