<\/p>\n
During Accel Entertainments earnings call for the first quarter of 2026, Chief Operating Officer Mark Phelan asked listeners to re-think how they view the company.<\/p>\n
\u201cWe increasingly think of it less as a logistics business and more as a gaming and hospitality business,\u201d Phelan said Tuesday during the call. \u201cA logistics business competes on efficiency, scale, and cost. The gaming and hospitality business competes on experience, content, relationships, and differentiation and it commands meaningfully better economics as a result.\u201d<\/p>\n
Accel Tuesday reported record revenue for a quarter, generating $352 million, a year-over-year increase of 9%. Net income was $15 million for Q126, flat compared to Q125. Adjusted EBITDA increased 9% to $54 million for Q126 compared to Q125.<\/p>\n
Most of Accel\u2019s business is based in Illinois, Nebraska, Georgia, Nevada, and Louisiana.<\/p>\n
\u201cThese results reflected the continued strength of our distributed gaming model, ongoing momentum in our developing markets, and our team\u2019s disciplined execution across each of our businesses,\u201d said Accel CEO Andy Rubenstein.<\/p>\n
\u201cAll of it is oriented around delivering a better or engaging entertainment experience for our players and more valuable relationship for our location partners,\u201d Phelan said. \u201cThat is a key driver our next phase of margin expansion and profitability growth at Accel.\u201d<\/p>\n
Accel, which primarily distributes, installs, maintains, and operates video gaming terminals at non\u2011casino locations including bars, restaurants, truck stops, and convenience stores, maintains a strong presence in Illinois. It is poised to enter the Chicago market when that becomes available.<\/p>\n
\u201cChicago represents one of the most exciting near-term growth opportunities we have seen in some time,\u201d Rubenstein said, noting that Accel is currently signing up locations while waiting for final regulatory approvals.<\/p>\n
\u201cAs the market leader in Illinois, with 2,678 locations, 15,413 gaming terminals, and an established platform of infrastructure, people, and relationships, we believe we\u2019re uniquely positioned to move quickly and efficiently when the market opens.\u201d<\/p>\n
Asked about the effect of rising gas prices on the company\u2019s bottom line, Rubenstein said Accel does not consider that a factor, now or historically.<\/p>\n
\u201cI\u2019m speaking mostly from the Illinois market,\u201d Rubenstein said. \u201cOur players need to travel less to reach our establishments as opposed to going to a regional casino. We tend to benefit when the player wants to stay closer to home. Whether it\u2019s going to impact their overall budget for entertainment spending, we\u2019re unsure, but we do know that they\u2019ll be spending less on gas to come play in our establishments.\u201d<\/p>\n
In Louisiana, Phelan said that the company is always looking for M&A opportunities. But again, rising gas prices seem to have little, if any, effect on that market.<\/p>\n