Key Takeaways:
- Accel Entertainment is evaluating the potential to bring its distributed gaming and local entertainment model to the city of Chicago
- The introduction of Video Gaming Terminals (VGTs) in licensed locations could generate approximately $64 million in incremental annual tax revenue for the City of Chicago
- Accel expects a Chicago VGT market could begin generating revenue as early as the third or fourth quarter of 2026, with a gradual ramp-up toward steady-state performance over time
- The company believes it is well-positioned to leverage its strong balance sheet and existing infrastructure to capitalize on opportunities in a Chicago VGT market
- Accel will continue to assess its capital deployment strategy and update the investor community as the regulatory and operating framework emerges
Introduction to Accel Entertainment’s Expansion Plans
Accel Entertainment, a leading locals-focused gaming operator, is exploring the possibility of expanding its operations to the city of Chicago. The company is evaluating the potential to bring its distributed gaming and local entertainment model to the city, following recent public announcements regarding the possible introduction of Video Gaming Terminals (VGTs) in licensed locations. This move is expected to generate significant revenue for the company, with the City Council Office of Financial Analysis estimating that the proposed framework for VGTs could generate approximately $64 million in incremental annual tax revenue for the City of Chicago.
Market Potential and Revenue Projections
The introduction of VGTs in Chicago is expected to have a significant impact on the gaming industry, with estimated annual gross gaming revenue (GGR) of $1 billion, incremental to the existing $3 billion generated in the rest of the state. Accel Entertainment expects to benefit from this expansion, with estimated incremental Net Terminal Income of approximately $320 million for the licensed VGT operator community operating in Chicago. The company believes that it can begin generating revenue from the Chicago VGT market as early as the third or fourth quarter of 2026, with a gradual ramp-up toward steady-state performance over time.
Capital Deployment and Regulatory Framework
Accel Entertainment is well-positioned to leverage its strong balance sheet, existing fixed operating infrastructure, route management capabilities, and fixed asset base to capitalize on opportunities in a Chicago VGT market. The company will continue to assess its capital deployment strategy, including ramp timing and marginal costs to service new accounts, as the regulatory and operating framework emerges. Accel will also monitor developments closely and update the investor community as appropriate, ensuring that it is prepared to take advantage of the opportunities presented by the introduction of VGTs in Chicago.
Company Overview and Operations
Accel Entertainment is a growing provider of locals-focused gaming and one of the largest terminal operators in the United States. The company supports over 28,000 electronic gaming terminals in more than 4,500 third-party local and regional establishments and 20 self-operated gaming locations across ten states. Accel provides its local partners with a turnkey, full-service, capital-efficient gaming solution that encompasses manufacturing, content, payments, loyalty, 24/7 customer service, data analysis and reporting, and cash logistics. The company’s racino venue, Fairmount Park – Casino & Racing, features approximately 270 electronic gaming machines, food and beverage amenities, a sports book, pari-mutuel betting, and 55 days of scheduled thoroughbred horse racing each year.
Forward-Looking Statements and Risk Factors
The company’s press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements represent the company’s current reasonable expectations and involve known and unknown risks, uncertainties, and other factors that may cause actual results to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. The company qualifies all of its forward-looking statements by these cautionary statements and is under no obligation to update or alter its forward-looking statements, whether as a result of new information, subsequent events, or otherwise, except as required by law.
