Accel Entertainment, Inc. (NYSE: ACEL)

Accel Entertainment, Inc. operates as a leading distributed gaming operator in the United States, offering turnkey, full-service gaming solutions to a variety of establishments. The company specializes in installing, maintaining, and servicing gaming terminals and related equipment for bars, restaurants, convenience stores, truck stops, and other venues. Additionally, Accel Entertainment develops brick-and-mortar casinos and horse racing venues, catering to local gaming markets. The company's operations are complemented by amusement devices such as jukeboxes, dartboards, and pool tables, which serve as a lead generation source for their gaming business.

Accel Entertainment generates revenue through the installation, maintenance, and operation of gaming terminals and related equipment. The company's primary products include gaming terminals, redemption devices with ATM functionality, stand-alone ATMs, and amusement devices. These products are offered to a diverse customer base, including bars, restaurants, convenience stores, truck stops, fraternal and veteran establishments, and casinos. The company's revenue model is supported by long-term, exclusive contracts with location partners, ensuring predictable and highly recurring revenue streams.

• Illinois: Accel Entertainment operates in Illinois under the same brand name, providing gaming terminals to establishments with a liquor license, bars, restaurants, retail locations, gaming cafes, fraternal organizations, veterans’ organizations, and truck stops. The company offers up to six gaming terminals for most locations, with larger truck stops accommodating up to ten terminals.

• Illinois (Fairmount Park – Casino & Racing): Accel Entertainment acquired Fairmount Park – Casino & Racing in Collinsville, Illinois, which opened in April 2025. This segment operates a thoroughbred horse race track with 57 racing days planned for 2026, a casino with approximately 260 gaming positions, and a sportsbook in partnership with FanDuel. The property also offers attractive food and beverage options throughout the year.

• Montana (Century Gaming): In Montana, Accel Entertainment operates under the Century Gaming brand, providing gaming terminals to business locations licensed to sell alcoholic beverages for on-premises consumption. The company caters to locations restricted to offering a maximum of 20 gaming terminals.

• Montana (Grand Vision Gaming): This segment designs and manufactures gaming terminals and software sold to Montana, South Dakota, and West Virginia. Grand Vision Gaming also develops proprietary gaming terminals and related software for Accel Entertainment's distributed gaming routes in Montana, Nevada, Nebraska, and Georgia.

• Montana (Yellowstone Casino and other local retail/parlor locations): Accel Entertainment operates retail gaming locations licensed to sell alcoholic beverages and offering a maximum of 20 gaming terminals. Certain locations feature attractive food offerings, and the company currently operates five parlor locations.

• Nevada (Century Gaming): In Nevada, Century Gaming operates in non-casino locations where gaming is incidental to the primary business. This includes grocery/drug/convenience stores, bars/restaurants/taverns, and liquor stores. The segment generally limits games to 15 or fewer gaming terminals with no other forms of gaming activity permitted.

• Nebraska (Accel Entertainment): Accel Entertainment operates cash devices in retail locations throughout Nebraska. The company serves retail establishments that are open to the public for the sale of goods other than gaming terminals and possess a valid sales tax permit.

• Georgia (Bulldog Gaming): In Georgia, Bulldog Gaming operates skill-based coin-operated amusement machines with winnings paid by gift cards through redemption terminals or Bulldog Wallet, or for noncash merchandise, prizes, toys, gift cards, or novelties.

• Louisiana (Toucan Gaming): Toucan Gaming operates in Louisiana, providing gaming terminals to truck stop gaming parlors (up to 60 gaming terminals) and establishments with a liquor license (up to 4 gaming terminals). The segment caters to bars, restaurants, retail locations, fraternal organizations, and veterans’ organizations.

• Iowa (Accel Entertainment): In Iowa, Accel Entertainment operates amusement concessions, including gaming terminals. Bars, taverns, and restaurants with a certain class of liquor license are permitted to operate up to four electrical or mechanical games of chance.

• Pennsylvania (Accel Entertainment): Accel Entertainment is licensed to operate at qualified truck stops in Pennsylvania and is actively exploring additional opportunities in the state.

Accel Entertainment holds a strong position within the distributed gaming industry, characterized by its responsive service, popular content, and high-quality, reliable products. The company competes on the basis of service responsiveness, product popularity, and the functionality and reliability of its offerings. Accel Entertainment operates in markets where terminal revenue splits are either statutorily determined or negotiated, with key competitors including other distributed gaming operators, casinos, Internet gaming platforms, sports betting providers, and various forms of legalized gaming. The company's competitive advantages include strong relationships with location partners, a dedication to customer experience, deep industry experience, and vendor relationships that enable favorable pricing and ample supply of key gaming machines.

Accel Entertainment serves a broad customer base, including local business owners such as bar and restaurant owners, convenience store operators, truck stop managers, and fraternal and veteran organization leaders. The company's customer base also extends to casino operators and horse racing venue managers, particularly with the acquisition of Fairmount Park – Casino & Racing. The diverse range of establishments and locations that Accel Entertainment serves underscores its extensive reach and market penetration within the distributed gaming sector.