Accel Entertainment, Inc. Market Research Report

Background

Company Overview

Accel Entertainment, Inc. is a leading distributed gaming operator in the United States, specializing in the installation, maintenance, and operation of gaming terminals, amusement devices, and related services. The company partners with various establishments, including restaurants, bars, convenience stores, and truck stops, to provide gaming solutions that enhance customer engagement and generate additional revenue streams. Accel Entertainment is headquartered in Burr Ridge, Illinois, and operates across multiple states, with a significant presence in Illinois.

Mission and Vision

Accel Entertainment's mission is to deliver innovative and responsible gaming solutions that create value for its partners and customers. The company envisions becoming the premier provider of distributed gaming services in the U.S., recognized for operational excellence, regulatory compliance, and community engagement.

Industry Significance

As a prominent player in the distributed gaming sector, Accel Entertainment contributes to the diversification of revenue streams for local businesses and supports the broader gaming industry's growth. The company's operations are integral to the evolving landscape of legalized gaming in the U.S., particularly in states like Illinois, where video gaming terminals (VGTs) have become a significant source of state and local revenue.

Key Strategic Focus

Core Objectives

Expansion of Market Presence: Increase the number of gaming terminals and partner locations across existing and new markets.

Diversification of Offerings: Expand into complementary gaming verticals, such as casino and racing operations.

Operational Excellence: Enhance service quality, machine uptime, and customer satisfaction.

Areas of Specialization

Distributed Gaming Operations: Management of VGTs and amusement devices in non-casino venues.

Casino and Racing Ventures: Ownership and operation of casino and racing facilities.

Amusement Devices: Provision of non-gaming entertainment options like jukeboxes and pool tables.

Key Technologies Utilized

Gaming Management Systems: Software platforms for monitoring and managing gaming terminals.

Data Analytics: Tools for optimizing machine placements and route efficiencies.

Customer Relationship Management (CRM): Systems to manage player engagement and loyalty programs.

Primary Markets Targeted

Illinois: The largest market, with a substantial number of VGTs and partner locations.

Montana and Nevada: Following the acquisition of Century Gaming, Inc., expanding into these markets.

Georgia and Pennsylvania: Recent market entries with licensed operations.

Financials and Funding

Funding History

Public Offering: In September 2020, Accel Entertainment completed a public offering of 8,000,000 shares of its Class A-1 Common Stock at $10.50 per share, raising $84 million for general corporate purposes.

Credit Facility: In Q3 2025, the company closed a new $900 million credit facility, extending maturities to 2030 and providing $590 million in liquidity.

Recent Financial Performance

Q3 2025 Revenue: $329.7 million, a 9.1% increase year-over-year.

Q1 2025 Revenue: $323.9 million, demonstrating continued growth in the distributed gaming model.

Utilization of Capital

Expansion Initiatives: Funding for acquisitions, such as Century Gaming, Inc., and the development of Fairmount Park Casino & Racing.

Operational Enhancements: Investments in gaming management systems, data analytics, and customer engagement platforms.

Capital Expenditures: Projected between $75 million and $80 million for 2025, including machine refreshes and market expansion.

Pipeline Development

Key Pipeline Candidates

Fairmount Park Casino & Racing: A new venture in Collinsville, Illinois, offering casino and racing operations.

Century Gaming, Inc.: Acquired in June 2022, expanding operations into Montana and Nevada.

Stages of Development

Fairmount Park Casino & Racing: Opened in April 2025, with plans for potential phase two expansion as customer engagement increases.

Century Gaming, Inc.: Integration into Accel Entertainment's operations, with a focus on expanding market share in the new regions.

Target Conditions

Fairmount Park Casino & Racing: Casino and racing enthusiasts in the Collinsville area.

Century Gaming, Inc.: Players in Montana and Nevada seeking distributed gaming options.

Anticipated Milestones

Fairmount Park Casino & Racing: Achieving operational stability and profitability in the first year.

Century Gaming, Inc.: Increasing market penetration and revenue growth in the new markets.

Technological Platform and Innovation

Proprietary Technologies

Gamblers Bonus® Loyalty Program: A proprietary payment system and loyalty program designed to drive repeat visitation and player engagement across partner locations.

Significant Scientific Methods

Data Analytics: Utilized for optimizing machine placements, route efficiencies, and customer engagement strategies.

Leadership Team

Executive Profiles

Andrew Rubenstein: Co-Founder, Chief Executive Officer (CEO), and President. Holds approximately 4.7% of the outstanding shares.

Gordon Rubenstein: Co-Founder and Chairman of the Board.

Brett Summerer: Chief Financial Officer (CFO), appointed in September 2025, bringing a fresh perspective to financial operations.

Mark Phelan: President of U.S. Gaming, overseeing the core distributed gaming operations.

Scott Levin: Chief Legal Officer & Secretary, managing the complex regulatory and compliance landscape inherent to gaming.

Competitor Profile

Market Insights and Dynamics

The distributed gaming industry is experiencing significant growth, driven by the expansion of legalized gaming in various states and the increasing acceptance of gaming terminals in non-casino venues. This growth presents opportunities for operators like Accel Entertainment to expand their market presence and diversify their offerings.

Competitor Analysis

Golden Nugget Online Gaming, Inc.: Primarily focused on online gaming, posing a challenge as consumer preferences shift toward digital platforms.

DraftKings Inc.: A leader in sports betting and fantasy sports, expanding into online casino gaming, representing a formidable competitor in the gaming industry.

Boyd Gaming Corporation: Operates a diverse portfolio of casinos and gaming venues across the U.S., providing broad market reach and competition.

Penn National Gaming, Inc.: With numerous properties and a strong market presence, offering diversified gaming operations, including sports betting.

Strategic Collaborations and Partnerships

Significant Collaborations

Century Gaming, Inc.: Acquisition in June 2022, expanding operations into Montana and Nevada.

Fairmount Park Casino & Racing: Acquisition in December 2024, marking diversification into owned and operated casino and racing venues.

Operational Insights

Strategic Considerations

Accel Entertainment's scale and deep regulatory expertise provide significant competitive advantages. Being the largest terminal operator in the country offers purchasing power and operational efficiencies. The company's dominance in core markets, such as Illinois and Montana, provides a stable base while pursuing growth in developing markets like Nebraska and Georgia.

Strategic Opportunities and Future Directions

Strategic Roadmap

Market Expansion: Continue to enter new states and regions, leveraging existing expertise and resources.

Diversification: Expand into complementary gaming verticals, such as casino and racing operations, to enhance revenue streams.

Innovation: Invest in technology and data analytics to optimize operations and improve customer engagement.

Future Business Directions

Accel Entertainment is well-positioned to capitalize on the growing demand for distributed gaming services. The company's strategic focus on expansion, diversification, and innovation aligns with industry trends and positions it for sustained growth and success.