Accel Entertainment Stock

Accel Entertainment, Inc. (Accel) is a distributed gaming operator in the United States (U.S.) and a preferred partner for local business owners in the markets it serves.

The company offers turnkey, full-service gaming solutions to bars, restaurants, convenience stores, truck stops, and fraternal and veteran establishments across the country. The company installs, maintains, operates and services gaming terminals and related equipment for its location partners, as well as redemption devices that have automated teller machine (ATM) functionality and stand-alone ATMs. The company offers amusement devices, including jukeboxes, dartboards, pool tables, and other entertainment related equipment. These operations provide a complementary source of lead generation for its gaming business by offering a one-stop source of additional equipment for its location partners. The company also designs and manufactures gaming terminals and related equipment. The company is continuously evaluating additional opportunities that are complementary to its core business.

States in Which the company Operates

Illinois: Establishments with a liquor license (Up to 6 gaming terminals), such as bars/restaurants/retail; gaming cafes; fraternal organizations; and Veterans’ organizations. Truck stops (Up to 6 gaming terminals). Large truck stops (Up to 10 gaming terminals).

Montana: Business locations licensed to sell alcoholic beverages for on-premises consumption only, including locations restricted to offering a maximum of 20 slot machines.

Montana: Designs and manufactures gaming terminals and software that are sold to Montana, South Dakota, West Virginia, and Louisiana. Develops proprietary gaming terminals and related software, as well as other ancillary equipment for the company’s distributed gaming routes in Montana, Nevada, Nebraska and Georgia.

Nevada: Non-casino locations where gaming is incidental to the primary business being conducted at the location, including grocery/drug/convenience stores; bars/restaurants/taverns; and liquor stores. Games are generally limited to 15 or fewer slot machines with no other forms of gaming activity permitted.

Nebraska: Operate cash devices in retail locations throughout the state. Retail establishments include any business location that is open to the public for the sale of goods other than gaming terminals and that possesses a valid sales tax permit.

Georgia: Operate skill-based coin-operated amusement machines with winnings paid in points that may be redeemed for noncash merchandise, prizes, toys, gift cards, or novelties.

Iowa: Operate amusement concessions, including games of chance and games of skill. 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: Operates gaming terminals at qualified truck stops. The company is a live with a partner truck stop.

Strategy

The key elements of the company’s strategy include identifying prospects for engagement after current contracts with other partners expire; optimizing revenues for gaming terminals it operates through refined data analysis, marketing and other initiatives; increasing distribution possibilities through corporate partners who operate multiple locations, such as chain stores; establishing close to home, convenient gaming parlors, casinos, hospitality/retail locations and other gaming operations that highlight its technology-enabled gaming equipment and has an attractive offering of food and beverage options; offering versatile and customer-friendly player rewards programs that can be tailored to the markets it operates in based on statutory regulations, including bonus games, promotions for players based on the frequency of play, increased daily redemption amounts, and promotions; expanding amusement operations, including jukeboxes, dartboards, pool tables, dart leagues and other amusement equipment to provide its local businesses with a wide array of quality devices to help attract more customers; making investments in Louisiana to potentially expand its presence there in mid-2024; evaluating other mature gaming jurisdictions where gaming terminals are currently legal, such as Oregon, South Dakota and West Virginia; and monitoring various states and other jurisdictions that have proposed legislation to permit gaming terminals or other forms of gaming, such as Alabama, Indiana, Kansas, Maine, Michigan, Missouri, Mississippi, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Ohio, Virginia and Wyoming.

Suppliers

The company purchases multi-game gaming terminals from leading manufacturers, such as Light & Wonder, Inc., IGT, Aristocrat and Novomatic. The company also purchases redemption terminals, amusement devices and stand-alone ATMs from reputable suppliers such as NRT, Touch Tunes, Arachnid, and Diamond.

Intellectual Property

The company owns or has the right to use the trademarks, service marks or trade names that it uses or will use in conjunction with the operation of its business. As of December 31, 2023, the company owned 129 registered trademarks.

Seasonality

The company’s operations in colder climates typically experience lower revenues in the summer when players typically spend less time indoors, and higher revenues in cold weather, specifically between February and April, when players will typically spend more time indoors.