Accel Q3 Footprint Expands as Chicago and Fairmount Plans Take Shape

Accel Entertainment (NYSE: ACEL) ended the third quarter of 2026 with a larger distributed-gaming footprint and outlined a multi-year expansion plan centered on Chicago and Fairmount Park. As of September 30, the company operated 29,548 machines across 4,705 partner locations, compared with 27,950 machines and 4,501 locations at the end of 2025.

The November presentation emphasized Accel’s operating scale, cash-generation targets and expansion pipeline. The company reported $220 million of trailing-12-month Adjusted EBITDA and highlighted net leverage of 1.4 times, along with an undrawn $300 million revolving credit facility.

Accel’s longer-term financial record showed revenue increasing from $970 million in fiscal 2022 to $1.33 billion in fiscal 2025, representing an 11% compound annual growth rate. Adjusted EBITDA rose from $162 million to $210 million over the same period, a 9% compound annual growth rate. The materials provided did not include detailed third-quarter GAAP revenue, net income or earnings-per-share figures.

Chicago and Fairmount Lead Expansion Plans

Chicago represents a central organic growth opportunity for Accel. As of November 2, the company had secured approvals for 25 of 78 establishments, or 32% of those approved to date. Management expects its share to normalize over time toward its roughly 30% statewide position in Illinois.

Accel said equipment has been staged and routes mapped, while its existing Illinois service and logistics network should limit incremental market-entry costs. The company expects an average of approximately 4.5 machines per Chicago location and a ramp lasting at least 12 months. Its timeline calls for investment in 2026, a broader ramp in 2027 and greater scale from 2028 onward, with mature margins expected to be consistent with the rest of its Illinois business.

Fairmount Park provides a separate growth platform through an owned casino and racing venue. As of September 30, the property had 252 machines and had generated $7 million of Adjusted Gross Revenue, which excludes player reinvestment. Accel plans a second-phase permanent-facility expansion and said the owned-venue model gives it greater control over operations, margins and the customer experience than its traditional revenue-sharing routes.

Core Markets Remain the Operating Base

Illinois remained Accel’s largest market, with 15,519 machines at 2,685 locations and $237 million of Gross Gaming Revenue before distributions to state and local governments and retail partners. The company’s Illinois strategy focuses on machine uptime, player rewards, targeted promotions and content optimization.

Montana, Accel’s other core market, had 6,805 machines across 631 locations and $37 million of Gross Gaming Revenue. The business includes proprietary loyalty technology, exclusive gaming content and five company-owned Yellowstone casino locations, which supplement the distributed route operation.

In developing markets, Nevada accounted for 4,099 machines at 553 locations and $31 million of Gross Gaming Revenue. Recent additions included approximately 600 machines through Green Valley Grocery, about 123 machines and 20 locations from Dynasty Games route assets, and 424 machines across 55 Rebel convenience stores.

Nebraska had 1,115 machines at 306 locations, while Georgia had 1,192 machines at 422 locations. The company is positioning both operations around regulatory compliance and further development of their distributed-gaming frameworks.

Louisiana, entered through the acquisition of Toucan Gaming, had 818 machines across 108 locations and $11 million of Gross Gaming Revenue. Accel plans to invest in refreshed gaming environments and player-engagement initiatives, with much of the route located in truck stops.

Cash Flow and Capital Allocation

Accel is targeting operating cash flow equal to approximately 70% of Adjusted EBITDA and free cash flow equal to roughly 45% of Adjusted EBITDA over time. Management cautioned that these conversion measures are best evaluated across multiple quarters because working-capital movements and timing can affect individual periods.

The company said most capital expenditure is directed toward replacement machines and other revenue-generating assets, with targeted payback periods of two to three years. Its capital priorities include machine refreshes, new locations, Chicago, Fairmount Park and selective route acquisitions. Accel also identified Missouri, Virginia and Pennsylvania as longer-term state expansion targets, without providing a timetable.

Risks to the plan include evolving gaming regulation, the company’s ability to retain and renew location-partner contracts, dependence on equipment and technology providers, and uncertainty surrounding expansion into casino operations and horse racing. Accel also cited geographic concentration, weaker discretionary consumer spending, cybersecurity and physical-security risks, and opposition to legalized gaming expansion as factors that could affect future results.