Accel Entertainment, Inc. (Accel) is a distributed gaming and local entertainment operator in the United States (U.S.) and a preferred partner for local business owners in the markets it serves.
The company offers turnkey, full-service gaming solutions to bars, restaurants, convenience stores, truck stops, and fraternal and veteran establishments across the country. In strategic markets, the company is the owner and operator of its own retail establishments, and gaming and entertainment venues....
Accel Entertainment, Inc. (Accel) is a distributed gaming and local entertainment operator in the United States (U.S.) and a preferred partner for local business owners in the markets it serves.
The company offers turnkey, full-service gaming solutions to bars, restaurants, convenience stores, truck stops, and fraternal and veteran establishments across the country. In strategic markets, the company is the owner and operator of its own retail establishments, and gaming and entertainment venues.
The company’s operations offer a complementary source of revenue for its location partners by offering a ‘one-stop’ solution of support, service, and equipment through:
Providing unmatched customer support, guidance, and expertise so the company’s location partners can grow their businesses with incremental revenue.
Installing, maintaining, operating and servicing gaming terminals and related equipment for the company’s location partners, as well as redemption devices that have automated teller machine (‘ATM’) functionality and stand-alone ATMs, driving game play and player loyalty.
Offering amusement devices, including jukeboxes, dartboards, pool tables, and other entertainment related equipment that enhance customer experience and engagement.
The company also designs and manufactures gaming terminals and related equipment. The company is continuously evaluating additional opportunities that are complementary to its core business.
Strategic Core Competencies
The company’s strategic core competencies support its local business model and contribute to the company’s industry-leading position:
Gaming-as-a-service Platform
The company’s gaming-as-a-service platform provides its local partners with a turnkey, full-service, capital-efficient gaming solution, including:
Business-to-business model secured by long-term, exclusive contracts, allowing for predictable, highly recurring revenue streams with strong loyalty and retention.
Technology-enabled gaming equipment from leading manufacturers and the company’s own proprietary Grand Vision Gaming equipment that provide the most captivating titles in slots entertainment; specifically, the company offers its players 135 different types of gaming terminal models and almost 2,000 different games, one of the broadest selections of high quality offerings in distributed gaming.
Data reporting solutions and analytics, offering insight and advice to help maximize revenues and grow.
Strong marketing, compliance, cash management, financial and technical support systems, all of which remain in-house to boost efficiency and enhance the company’s ability to provide best-in-class service.
Strong Relationships with Location Partners
The company has prioritized establishing strong, lasting relationships with its location partners since the company’s inception, providing unparalleled support, such as:
Dedicated relationship managers assisting with regulatory applications and compliance onboarding, training on how to engage with players and potential players, monitoring individual gaming areas for compliance, cleanliness and comfort and recommend potential changes to improve player gaming.
Providing individualized weekly gaming revenue reports analyzing and comparing gaming results, which can be used to determine an optimal selection of games, layouts and other ideas to generate foot traffic.
Offering value-added services such as amusement solutions, dart leagues, prize pools, and ATMs, which are a key competitive advantage.
Dedication to the customer experience. The company focuses on its customers both the location partners and players to provide a smooth and seamless experience, including:
Engaging locations through every step of onboarding, including assistance with the license application process and ongoing regulatory compliance support and education.
Assisting in the design and construction of gaming areas, including the selection of the optimal gaming equipment, which is owned by the company and provided at no cost to the location.
Providing highly secured cash management services through the company’s in-house collections, processing and security personnel.
Best-in-class customer service, with a dedicated 24/7 call center and highly skilled local technicians who quickly resolve issues and ensure minimal downtime through proactive service and routine maintenance.
Deep Industry Experience and Vendor Relationships
The company’s leading market position has led to strong relationships within the industry and with equipment suppliers, leading to:
Offering premium, high-quality equipment, which gives the company’s location partners a competitive advantage by limiting downtime to maximize revenue and player retention.
Receiving favorable pricing and ample supply of key gaming machines.
The company’s ability to procure machines and parts easily, so that the company is able to rotate machines quickly to its gaming locations on an optimized basis.
Established proprietary player rewards systems that the company continues to enhance to further player retention and engagement across its locations and markets.
Growth Opportunities
The company’s experienced leadership team and motivated sales team, including internal and external sales agents, drive the sourcing of new locations and opportunities for the company. When seeking a new opportunity, the company employs a data-driven process to identify leads using a variety of digital and traditional strategies to drive organic gaming partnerships and preferences.
The company’s key growth strategies include growing in current markets both organically and inorganically; evaluating additional business opportunities; and expanding into new states that it does not operate in.
The company continues to evaluate where to expand its distributed gaming operations, including:
Evaluating other mature gaming jurisdictions where gaming terminals are legal, such as Oregon, South Dakota and West Virginia.
Monitoring various states and other jurisdictions that have proposed legislation to permit gaming terminals or other forms of gaming, such as Alabama, Indiana, Kansas, Maine, Michigan, Missouri, Mississippi, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Ohio, Virginia and Wyoming.
Industry
Distributed Gaming
The company is a leading operator within the U.S. distributed gaming industry, which consists of the installation and service of gaming terminals at non-casino locations.
Casino and Racing
Starting in 2025, the company plans to open a casino at the FanDuel Sportsbook and Racktrack in the greater St. Louis/southern Illinois market, with Phase I of the casino opening in second quarter 2025 and the Phase II build out of a permanent facility anticipated to start shortly after the completion of Phase I. The 2025 racing season is planned for April - October 2025.
Suppliers
The company purchases multi-game gaming terminals from leading manufacturers, such as Light & Wonder, Inc., International Game Technology (‘IGT’), Aristocrat, and Novomatic. The company also purchases redemption terminals, amusement devices and stand-alone ATMs from reputable suppliers, such as NRT Technology, Touch Tunes, Arachnid, and Diamond.
Intellectual Property
As of December 31, 2024, the company owned 432 registered trademarks.
Seasonality
The company’s operations in colder climates typically experience lower revenues in the summer when players typically spend less time indoors, and higher revenues in cold weather, specifically between February and April, when players will typically spend more time indoors.