Illinois-based video-gaming-terminal provider, Accel Entertainment, on its earning call Tuesday announced record net revenue of $309.4 million for 2Q of 2024, a year-over-year increase of 4.7%. There were also jumps in Accel’s gaming terminals nationwide, its 25,575 terminals a 5.7% increase compared to 2023. Accel also experienced an increase in locations; the 4,034 marked an increase of 4.7%. Record adjusted EBITDA of $49.7 million in 2Q24 was an increase of 6.5% compared to 2Q23.
“It’s a very exciting time here,” said CEO Andy Rubenstein, citing the company’s record revenue as proof.
“We’re proud of the strong foundation we’ve built in our home state,” Rubenstein continued, noting the company added locations in Illinois and Montana in the quarter. “… This is another way we differentiate ourselves.”
Rubenstein said the addition of ticket-in-ticket-out may help address the increase in Illinois’ state tax.
“TITO, we believe, really helps facilitate our players in getting more value for their time,” he said. “They won’t be cashing out all the time, so they’ll be able to continue their play. Historically, when TITO is introduced, it provides the left of the market of about 5% to 10%, so we feel that will help the half-percent tax that we received. … It really allowed us to identify opportunities to operate what we call revenue centers and cut back on some of the expenses for those outlier counts that happen.”
Rubenstein also is bullish on the acquisition of Fairmount Park in Collinsville, Illinois and admitted that Accel plans to move forward with other possible mergers and acquisitions possibilities.
“The timing of Fairmount allows us to continue to working projects we’ve been working on for the last 12-18 months,” he said. “I think you’ll see we’ll continue finding local gaming opportunities that are within our economics. We have significant liquidity to execute on this, and we have the team to be successful in local gaming entertainment market.”
