Accel Entertainment considers entering Chicago's potential video gaming market

Accel Entertainment is exploring entry into Chicago’s potential video gaming terminal (VGT) market following recent public announcements about VGTs in licensed locations.

The City Council Office of Financial Analysis (COFA) estimates that the proposed VGT framework could generate approximately $64 million in additional annual tax revenue for the city. According to COFA’s analysis, this would imply a total annual Chicago VGT gross gaming revenue (GGR) of $1 billion, incremental to the existing $3 billion generated across the rest of Illinois.

The analysis also noted that full implementation could take up to 10 years, based on prior studies. Under current legislative guidelines, VGT operators are entitled to 32.04% of GGR, which translates to an estimated $320 million in incremental net terminal income for licensed operators in Chicago.

The company expects that, despite the long-term ramp to full market maturity, the Chicago VGT market could start generating revenue for the company as early as the third or fourth quarter of 2026, following the completion of legislative, regulatory, and implementation processes. Revenue growth is expected to gradually increase toward steady-state performance over time.

From a capital deployment perspective, Accel said it is well-positioned to leverage its strong balance sheet, existing operating infrastructure, route management capabilities, and fixed asset base to capitalize on opportunities in Chicago, subject to customer acquisition rates and final regulatory approvals.

Accel said it will continue to monitor developments and adjust its capital strategy as the city finalizes VGT regulations, updating investors as appropriate.