Accel Entertainment, Inc. (ACEL): History, Ownership, Mission, How It Works & Makes Money

Did you know Accel Entertainment, Inc. (ACEL) operated over 24,191 gaming terminals by the end of March 2024, generating significant revenue through its unique distributed gaming model?

This company has carved out a substantial niche, providing video gaming solutions primarily to non-casino locations like bars, restaurants, and truck stops, becoming a key player in regulated local gaming markets.

But how did Accel grow to this scale, who steers its direction, and what exactly drives its financial success in this specialized industry?

Understanding Accel's journey and operational mechanics offers valuable insights into the lucrative, yet complex, world of distributed gaming.

Accel Entertainment, Inc. (ACEL) History

Understanding the journey of Accel Entertainment provides crucial context for its current market position and strategy. Its origins trace back to anticipating regulatory shifts in Illinois gaming.

Accel Entertainment's Founding Timeline

The company's formal structure emerged from recognizing a specific market opportunity.

Year established

Accel Entertainment was officially established in 2010, consolidating earlier efforts and positioning itself for the burgeoning video gaming terminal (VGT) market in Illinois.

Original location

The company began its operations in Burr Ridge, Illinois, strategically located within its primary initial market.

Founding team members

The key figures behind Accel's inception include Andrew Rubenstein and Gordon Rubenstein, who leveraged their prior industry experience.

Initial capital/funding

Growth was initially driven by founder capital and a focused strategy on acquiring smaller VGT operators, building scale organically before seeking larger external funding.

Accel Entertainment's Evolution Milestones

Accel's path has been marked by key legislative changes, strategic decisions, and expansion efforts.

Accel Entertainment's Transformative Moments

Several strategic decisions fundamentally shaped Accel's trajectory.

Capitalizing on Illinois Legislation

The foresight to build a business model anticipating the 2012 implementation of the Video Gaming Act in Illinois was foundational. This first-mover advantage in a large, new market created the base for future growth.

Embracing the Public Markets

The 2019 decision to merge with a SPAC wasn't just about capital; it fundamentally changed Accel's scale and ambition. It provided the currency and profile needed for larger acquisitions and national expansion. Understanding the resulting shareholder base is key. Exploring Accel Entertainment, Inc. (ACEL) Investor Profile: Who’s Buying and Why? offers insights into this aspect.

Aggressive M&A as a Core Strategy

Accel consistently used acquisitions not just for growth, but to enter new geographies and consolidate fragmented markets. This repeatable M&A playbook, significantly accelerated post-SPAC, transformed it from a regional Illinois player into a multi-state operator by 2024.

Accel Entertainment, Inc. (ACEL) Ownership Structure

Accel Entertainment operates as a publicly traded entity, resulting in a diverse ownership base primarily composed of institutional investors alongside public shareholders and company insiders.

Accel Entertainment, Inc.'s Current Status

As of the end of 2024, Accel Entertainment, Inc. is a publicly listed company. Its shares are traded on the New York Stock Exchange under the ticker symbol ACEL.

Accel Entertainment, Inc.'s Ownership Breakdown

The ownership structure reflects its public status, with significant holdings by large financial institutions. Here's an approximate breakdown based on available data towards the end of the 2024 fiscal year:

This distribution highlights the substantial influence institutional investors may have on corporate governance and strategic direction.

Accel Entertainment, Inc.'s Leadership

The company's strategic direction and day-to-day operations are guided by its executive team and board of directors. Key leadership figures steering the organization at the close of 2024 include:

• Andrew Rubenstein, serving as Chief Executive Officer.
• Gordon Rubenstein, holding the position of Chairman of the Board.

Their leadership shapes the company's approach to growth and market positioning, aligning with the overall Mission Statement, Vision, & Core Values of Accel Entertainment, Inc. (ACEL).

Accel Entertainment, Inc. (ACEL) Mission and Values

Accel Entertainment aims to be the premier distributed gaming operator, focusing on strong partnerships with local businesses and delivering engaging entertainment experiences. Their values center on integrity, operational excellence, and community support, guiding decisions beyond immediate financial returns.

Accel Entertainment's Core Purpose

Understanding a company's stated purpose offers insight into its culture and strategic direction. This context is valuable when assessing its overall performance, including aspects detailed in Breaking Down Accel Entertainment, Inc. (ACEL) Financial Health: Key Insights for Investors.

Official mission statement

Accel Entertainment does not publicly state a formal mission statement in the traditional sense on its primary corporate communication channels as of early 2024. However, its operational focus and public communications emphasize becoming the top choice for partners and players in the distributed gaming market.

Vision statement

Similarly, a specific, publicly designated vision statement is not readily available. The company's vision is inferred through its strategic goals: expanding its footprint, enhancing technology, and maximizing value for its location partners and shareholders.

Company slogan

Accel Entertainment does not appear to utilize a single, consistent public-facing slogan across its branding and marketing materials.

Instead of explicit statements, Accel often communicates its purpose through core principles guiding its operations:

• Partnership: Building strong, mutually beneficial relationships with location owners.
• Compliance: Upholding the highest standards of regulatory compliance and ethical conduct.
• Innovation: Leveraging technology to improve player experience and operational efficiency.
• Community Focus: Supporting the local communities where it operates.

Accel Entertainment, Inc. (ACEL) How It Works

Accel Entertainment partners with non-casino locations, like bars, restaurants, and truck stops, installing and operating video gaming terminals (VGTs) and other amusement devices. The company manages the entire process, from licensing and compliance to maintenance and cash management, sharing the generated revenue with the location owner.

Accel Entertainment, Inc.'s Product/Service Portfolio

Accel Entertainment, Inc.'s Operational Framework

Accel's operations revolve around a distributed network model, managing VGTs and amusement devices across thousands of partner locations. They handle the complex regulatory landscape, ensuring compliance with state and local gaming laws, which is a significant value driver for their location partners. Key operational processes include:

• Route Management: Efficiently servicing and maintaining terminals across a wide geographic area using dedicated technicians and proprietary software.
• Cash Logistics: Securely collecting, counting, and distributing cash generated from the terminals.
• Revenue Sharing: Calculating and disbursing the agreed-upon portion of net terminal income (revenue after state taxes and fees) to location partners, typically forming a significant income stream for these small businesses.
• Compliance & Licensing: Navigating the intricate licensing requirements and ongoing regulatory reporting for both the company and its partners.

Their technology platforms provide real-time data on machine performance, optimizing placement and maintenance schedules. This data-driven approach helps maximize revenue for both Accel and its partners. More details on their financial performance can be seen when you are Breaking Down Accel Entertainment, Inc. (ACEL) Financial Health: Key Insights for Investors.

Accel Entertainment, Inc.'s Strategic Advantages

Accel maintains a strong market position through several key advantages. Its extensive scale, particularly as the market leader in Illinois with nearly 3,800 locations served by late 2024, provides significant operational efficiencies and bargaining power. Deep expertise in navigating complex state-by-state gaming regulations acts as a barrier to entry for potential competitors. Furthermore, the company has proven its ability to grow through strategic acquisitions, integrating smaller operators and expanding its geographic footprint into new state markets. Strong relationships with location partners, built on reliable service and revenue generation, foster loyalty and reduce churn.

Accel Entertainment, Inc. (ACEL) How It Makes Money

Accel Entertainment primarily generates revenue by installing, operating, and servicing video gaming terminals (VGTs) in authorized non-casino locations like restaurants, bars, truck stops, and fraternal organizations, earning a share of the net gaming revenue generated from these machines.

Accel Entertainment, Inc.'s Revenue Breakdown

Accel Entertainment, Inc.'s Business Economics

The company operates on a revenue-sharing model with its location partners. Accel typically incurs the costs of the VGTs, licensing, installation, maintenance, and cash management services. In return, it splits the net terminal income (revenue after player payouts) with the establishment owner according to state regulations and contractual agreements. This model incentivizes both Accel and the location partner to maximize player engagement and terminal uptime. Key economic drivers include:

• The number of licensed locations and installed VGTs.
• Average daily net win per VGT.
• Regulatory frameworks governing payout percentages and location eligibility.
• Route density and operational efficiency in servicing terminals.

Understanding the ownership structure can also provide insights. Exploring Accel Entertainment, Inc. (ACEL) Investor Profile: Who’s Buying and Why? delves deeper into who holds stakes in the company. The economics rely heavily on scaling operations efficiently across a large number of locations, leveraging route management technology and strong partner relationships.

Accel Entertainment, Inc.'s Financial Performance

Based on performance trends leading into year-end 2024, Accel Entertainment demonstrated continued financial strength. Total estimated revenue for the fiscal year 2024 approached $1.2 billion, driven by organic growth in same-store sales and expansion into new locations. Adjusted EBITDA, a key measure of operating profitability, was projected to be approximately $200 million for 2024. The company ended the year with operations spanning thousands of locations and managing over 24,000 VGTs. Continued focus on optimizing revenue per terminal and expanding its geographic footprint underpin its financial results.

Accel Entertainment, Inc. (ACEL) Market Position & Future Outlook

As of early 2025, Accel Entertainment maintains a strong position as a leading US distributed gaming operator, primarily leveraging its significant footprint in Illinois while actively pursuing geographic expansion and consolidation opportunities through strategic acquisitions.

Competitive Landscape

Opportunities & Challenges

Industry Position

Accel Entertainment solidified its role as a market leader within the US distributed gaming sector throughout 2024, demonstrating significant scale with operations spanning thousands of locations and managing well over 20,000 gaming terminals. The company's growth trajectory heavily relies on both organic expansion within existing markets and a disciplined acquisition strategy, targeting smaller operators to enhance route density and enter new jurisdictions. This model positions ACEL effectively within the fragmented landscape of gaming outside traditional casinos. Understanding who invests in companies like ACEL offers further insight into market confidence and strategic direction; you can learn more by Exploring Accel Entertainment, Inc. (ACEL) Investor Profile: Who’s Buying and Why?. Its public listing provides capital access advantages over many smaller, private competitors, supporting its ongoing consolidation and expansion efforts into early 2025.