Accel Entertainment Prepares to Launch in Chicago if VGTs Are Regulated

Accel Entertainment is eyeballing Video Gaming Terminal (VGT) opportunities in Chicago after a recent announcement suggesting the possible introduction of such machines in licensed locations. City officials say that the change could generate additional tax revenue, while Accel Entertainment believes this could represent a significant opportunity for its business.

Accel Monitors Chicago’s Strides Toward a Regulated VGT Framework

In its official announcement, Accel Entertainment said that it is “evaluating the potential to bring its distributed gaming and local entertainment model” to Chicago, if the city proceeds with its mulled introduction of VGTs in licensed locations.

For context, the City Council Office of Financial Analysis (COFA) believes that introducing VGTs at licensed locations could generate millions of dollars in annual tax revenue for the city. Experts put this figure at up to $64 million a year, which implies VGT gross gaming revenue of $1 billion a year (in addition to the $3 billion generated by VGT sites in the rest of the state). However, reaching these figures might take up to a decade, analysts pointed out.

In its release, Accel Entertainment noted that, currently, VGT operators receive a statutory split of GGR equal to 32.04%. This could mean approximately $320 million of expected incremental net terminal income for the licensed VGT operator community operating in Chicago, the company said.

Accel Is Convinced Its Launch in Chicago Will Be a Success

While Accel Entertainment acknowledged the predictions that market maturity could take up to a decade, the company said that it expects its business to fare better should it launch VGTs in Chicago. Accel based its predictions on its broader experience in Illinois and said that its potential operations in Chicago could begin generating revenue for the company as early as Q3 or Q4 2026. From then on, Accel expects a gradual ramp-up toward steady-state performance.

From a capital deployment perspective, Accel believes it is well-positioned to leverage its strong balance sheet, existing fixed operating infrastructure, route management capabilities, and fixed asset base to capitalize on opportunities in a Chicago VGT market, subject to customer acquisition rates and final regulatory requirements.

Accel Entertainment statement

As Accel awaits the finalization of Chicago’s VGT regulatory and operating framework, company leaders will continue to analyze and perfect the business’s capital deployment strategy for its planned participation in the Chicago VGT market.

The company concluded that it will continue to closely monitor the situation.