J&J Secures Preferred Equity Investment to Fuel Continued Expansion

Oaktree remains the majority shareholder.

J&J Ventures Gaming, LLC (“J&J” or “the Company”), a national leader in distributed gaming and amusements operations, announced today that it has received a preferred equity investment from a leading global investment firm. The investment will allow for additional capital to be drawn at the Company’s discretion to support further organic growth and expansion into new markets. Funds managed by Oaktree Capital Management, L.P. (“Oaktree”) will remain the majority shareholder in J&J Ventures Gaming and continue to closely partner with the Company’s founders and management team.

Headquartered in Effingham, Illinois, J&J Ventures Gaming installs, owns, operates, and services video gaming terminals (“VGTs”) across non-casino locations, such as truck stops, bars, restaurants, and convenience stores, in various regulated jurisdictions. With experience in route operations dating back to 1929, J&J Ventures Gaming was founded in 2012 by Kay Jansen, Jack Jansen, and Bob Willenborg to enter the slot route operations market. Since first partnering with Oaktree in 2019, the Company has grown rapidly from operating 6,000 VGTs in one state to over 26,000 terminals across more than 3,600 locations, with a market-leading presence in Illinois, Nevada, and Montana.

Bob Willenborg, CEO of J&J Ventures Gaming, said, “Since its founding, J&J has built its strong market position and reputation through a commitment to best-in-class service for its customers. Under these guiding values, the J&J management team is proud of the incredible growth that the Company has achieved. Oaktree has been a tremendous partner in this journey, and we are thrilled to welcome our new investor into the fold as we advance and expand our company.”

“We’re proud of the results that the J&J team has achieved since our initial investment in 2019, growing to first become the market leader in Illinois and then a leading national terminal operator with expansion into strong markets like Nevada and Montana,” said David Quick, Managing Director and Assistant Portfolio Manager of Oaktree’s Special Situations Strategy. “Distributed gaming remains an attractive segment within the gaming industry, offering significant growth opportunities. We view this investment as a testament to both the Company’s achievements and the continued support in the capital markets for distributed gaming assets.”

“As we look to unlock additional opportunities for J&J in both existing and new markets, there is no better time to welcome a new strategic partner on board,” said Matt Wilson and Jordon Kruse, Co-Portfolio Managers of Oaktree’s Special Situations Strategy. “We look forward to working with the rest of the stakeholder group to support the Company’s continued success into its next chapter of growth.”

Goldman Sachs acted as financial advisor, and Kirkland & Ellis LLP, Taft, Stettinius, & Hollister LLP, and Greenberg Traurig LLP served as legal and regulatory counsel to J&J Ventures Gaming and Oaktree.

About J&J Gaming
J&J Gaming, including its subsidiaries and affiliates, is the largest distributed gaming operator in the United States providing gaming-as-a-service to non-casino locations such as restaurants, bars, taverns, convenience stores, truck stops and grocery stores in various regulated jurisdictions. The company operates nearly 26,000 machines in 3,600 locations across Illinois, Nevada, Montana, Pennsylvania and Nebraska. To learn more about J&J, click here.

About Oaktree
Oaktree is a leader among global investment managers specializing in alternative investments, with $193 billion in assets under management as of June 30, 2024. The firm emphasizes an opportunistic, value-oriented and risk-controlled approach to investments in credit, private equity, real estate and listed equities. Oaktree has over 1,200 employees and offices in 23 cities worldwide. For additional information, please visit Oaktree’s website, here.