Quarterly profits surge for Accel Entertainment, yet the corporation underplays future expansion aspirations
Accel Entertainment Continues Strategic Growth in Commercial Casinos Market
Accel Entertainment, a major distributor of video gaming terminals, redemption machines, and amusement devices, has announced its continued expansion in the commercial casinos market. The company's growth strategy is centered around disciplined mergers and acquisitions (M&A), strategic investments, and selective market expansion.
This strategy was put into action with the acquisition and development of Fairmont Park Casino & Racing in Collinsville, Illinois, which began casino and racing operations in April 2025. This move is a significant part of Accel Entertainment's expansion strategy, aligning with their goal to enhance their market position within the $15 billion local gaming market.
The Fairmont Park project represents a milestone, indicating a commitment to growing their physical footprint and revenue streams by entering or strengthening their presence in key regional markets.
Key elements of Accel Entertainment’s approach include capital investment, disciplined expansion, maintaining financial prudence, and market leadership and pipeline. Projected capital expenditures of $75-80 million for 2025 indicate they are allocating significant resources to support acquisitions and growth initiatives, including Fairmont Park.
The company focuses on maintaining steady year-over-year revenue and EBITDA growth, emphasizing operational improvements at newly acquired or developed locations such as Fairmont Park. While pursuing growth, Accel intends to avoid over-leveraging, as shown by their net debt management ($331 million as of June 30, 2025) and share repurchases, signaling confidence and financial discipline.
Accel's active M&A pipeline in the local gaming space points to continued acquisition efforts and strategic integration of new gaming venues.
CEO Andy Rubenstein stated that there are no plans to expand the company beyond its current acquisitions, but the company remains opportunistic about acquisitions. Rubenstein expects the company to continue growing through these opportunities, with future opportunities likely being adjacent or in the markets that Accel Entertainment is already in.
Accel Entertainment reported a record quarterly revenue of $335.9 million in Q2 2025, a 8.6% year-over-year increase. Adjusted EBITDA for Q2 2025 was a record $53.2 million, a 7.1% increase compared to Q2 2024. However, net income for Q2 2025 was a 50.2% decrease compared to the same period in 2024, due to a loss on the change in the fair value of contingent earnout shares.
U.S. Gaming and Interim Chief Financial Officer Mark Phelan stated there are positive indicators for casino, racing, sportsbook, and food and beverage operations at Fairmount Park. Phelan expects Fairmount Park to be a significant contributor in 2026. Accel Entertainment has 27,388 gaming terminals, a 3.4% year-over-year increase, and ended Q2 2025 with 4,427 locations, a 3.1% increase from Q2 2024.
Rubenstein stated that Accel Entertainment generates significant cash flow and that the company is hopeful that Fairmount Park will begin to produce dividends with time. Rubenstein mentioned the recent acquisitions in Louisiana with Toucan Gaming as examples of opportunities the company has taken advantage of.
In conclusion, the acquisition and operation of Fairmont Park Casino & Racing in Collinsville, Illinois, is a concrete example of Accel Entertainment executing their strategy of growth through strategic acquisitions and operational expansion within the commercial casinos market, combined with prudent financial management and an ongoing focus on market share gains.
- Accel Entertainment's growth strategy in the commercial casinos market involves not only strategic acquisitions, such as Fairmont Park Casino & Racing, but also investments in casino-games and an overall commitment to the casino-culture.
- As part of their expansion plans, Accel Entertainment aims to enhance their position within the $15 billion local gaming market, which includes not only casino operations, but also business ventures related to casino-and-gambling such as sportsbook, food and beverage, and potential future investments.
