Second quarter earnings for Accel Entertainment show a significant increase, yet the company plays down potential expansion projects.
Accel Entertainment, a leading player in the gaming industry, has announced ambitious expansion plans for the future. The company, which recently opened the Fairmount Park Casino & Racing facility in Illinois, is focusing on growing in existing and new markets through acquisitions, product enhancements, and casino operations.
According to CEO Andy Rubenstein, the company evaluates opportunities to best deploy its cash, taking advantage of opportunities similar to the acquisitions of Fairmont Park in Collinsville, Illinois, and Toucan Gaming in Louisiana. The company's interim Chief Financial Officer, Mark Phelan, expressed optimism that Fairmount Park will begin to produce dividends with time.
The company's future growth will likely be adjacent or in the markets it is already in. Phelan stated that the company has seen positive indicators for all four sectors - casino, racing, sportsbook, and food and beverage - that matched their internal expectations.
The development of Fairmount Park Casino & Racing is central to their growth, with Phase 2 expansion in planning, indicating ongoing investment in casino and racing operations to enhance gaming offerings. The implementation of TITO (Ticket-In, Ticket-Out) technology reflects a strategic move to modernize gaming infrastructure, although it presents challenges during expansion.
Accel emphasizes a full-service, integrated gaming solution including manufacturing, content, payments, loyalty, customer service, and analytics to support expansion and improve competitive advantage across existing and new markets. Their M&A strategy remains active and financially supported, evidenced by solid balance sheet management and share repurchases, reflecting confidence in ongoing growth prospects.
In the second quarter, Accel Entertainment reported a record quarterly revenue of $335.9 million, an increase of 8.6% year-over-year. The company had 27,388 gaming terminals at the end of the second quarter, a 3.4% year-over-year increase. Net income for the quarter was $7.3 million, 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. Adjusted EBITDA for the quarter was a record $53.2 million, a 7.1% increase compared to the second quarter of 2024.
Racing operations at Fairmount Park began in April 2025, and the company's operations at the facility are still in the early stages, with the 13th week having passed. The company ended the second quarter of 2025 with 4,427 locations, a 3.1% increase from the previous year.
CEO Rubenstein stated that Accel Entertainment is opportunistic about acquisitions but does not plan to leverage the company in an extreme way. The company has plenty of availability and is about to refresh its credit facility. Despite these aggressive expansion plans, Accel Entertainment has no current plans to expand the company beyond its role as a distributor of video gaming terminals, redemption machines, and amusement devices.
References:
[1] Accel Entertainment Press Release, "Accel Entertainment Reports Record Second Quarter 2025 Results," 2025. [2] Accel Entertainment Investor Presentation, "Accel Entertainment Q2 2025 Earnings Call," 2025. [3] Accel Entertainment Annual Report, "Accel Entertainment 2024 Annual Report," 2024. [4] Accel Entertainment Fact Sheet, "Accel Entertainment Fact Sheet," 2025.
- Accel Entertainment, with its focus on expansion in the gaming industry, is evaluating opportunities to invest in casino-games and casino-culture, following the success of their acquisitions like Fairmont Park in Illinois and Toucan Gaming in Louisiana.
- Accel Entertainment's future growth plans involve investing in casino-operations, as demonstrated by the ongoing development of the Fairmount Park Casino & Racing facility and the implementation of modern technology like TITO.
- The company's strategy includes strengthening its competitive advantage in the finance sector by improving business operations, enhancing gaming offerings, and expanding through acquisitions, while maintaining a steady financial position, as evidenced by solid balance sheet management and share repurchases.
