J&J Gaming Boosts Midwest Footprint in Midwest Amusements Deal

• Distributed gaming operator makes big addition in its home region
• Midwest Amusements has more than 420 gaming devices across three states

Distributed gaming company J&J Gaming said Thursday that it’s acquiring Midwest Amusements LLC — a transaction that bolsters the buyer’s Midwest footprint.

Financial terms of the acquisition weren’t disclosed. Midwest Amusements controls more than 420 gaming machines across Iowa, Nebraska, and Wyoming. The bulk of the company’s gaming devices are located in convenience stores and truck stops.

J&J Gaming is the leader in the installation and operation of regulated gaming devices in restaurants, bars, taverns, convenience stores, truck stops and other authorized venues. The addition of Midwest Amusements will result in a platform that has more than 32,200 gaming devices in 4,200 locations across 7 jurisdictions,” according to a statement issued by the closely held company.

Illinois-based J&J has machines at various businesses in its home state, Iowa, Montana, Nebraska, Nevada, Pennsylvania, and Wyoming.

J&J Gaming Growing Through Acquisitions

Acquisitions are effective tools for route operators such as J&J to add geographic diversification, more machines and revenue, and it’s a tactic the company has previously deployed.

One of its most significant deals to date was the 2023 $361.5 million purchase of Golden Entertainment’s (NASDAQ: GDEN) distributed gaming operations in Montana and Nevada.

As for the Midwest Amusements deal, the buyer believes it will generate long-term benefits.

“This acquisition represents another key step in J&J Gaming’s growth strategy as we strengthen our presence across Nebraska and the Midwest,” said J&J Gaming CEO Bob Willenborg in a statement. “We are thrilled to welcome their team and partners into the J&J family as we continue to expand our footprint and deliver industry-leading solutions across the country.”

Distributed Gaming Space Ripe for Consolidation

Though not as glamorous as iGaming, sports wagering, or even land-based casinos, distributed gaming operations generate steady cash flow and profits, but it’s also a fragmented industry with a scant number of players with the scale of J&J. That fragmentation also makes the space ripe for consolidation, according to some analysts.

Last month, that company announced the acquisition of Dynasty Games to add exposure in Northern Nevada, and that deal arrived after others of a similar nature in 2024.