Accel Entertainment projects fewer machines per location but higher revenue per machine in Chicago, highlighting significant growth potential with an estimated 2,500 new licensed locations.
Generated by Dafinchi AI. Source-grounded AI analysis, not investment advice.
Can management quantify expected average machines per location and revenue per machine for Chicago once licensed?
1. Average Machines per Location in Chicago:
Management has indicated that establishments in the City of Chicago tend to have smaller available square footage compared to venues elsewhere in Illinois due to higher real estate values and greater density. As a result, they expect a lower average number of gaming machines per location in Chicago than in other parts of the state.
2. Expected Revenue/Performance per Machine:
While the average machines per location may be lower in Chicago, management expects the revenue per machine, or performance per location, to be higher than the company’s existing Illinois portfolio. This is largely attributed to:
3. Market Share and Location Count:
4. Operational Considerations:
| Metric | Commentary | Citation(s) |
|---|---|---|
| Average machines per location (Chicago) | Fewer than 6 machines per location typical elsewhere in IL due to smaller venue sizes and real estate constraints; exact number not stated yet | 1 |
| Revenue per machine / location (Chicago) | Expected higher than existing Illinois portfolio because of higher population density and better location selection | 21 |
| Expected market share in Chicago | Approx. 30%, consistent with current IL market share | 2 |
| Estimated total Chicago locations (long-term) | ~2,500 new locations projected by the city | 3 |
| Operational factors | Need for some city-based warehousing/support; offset by existing strong servicing infrastructure | 15 |
Management has not provided a precise quantified average number of machines per location specifically for Chicago but clearly anticipates it to be lower than the typical 6 machines per location seen in the rest of Illinois due to physical constraints in city venues. However, they expect a higher revenue per machine/location in Chicago driven by greater population density and better site economics, reinforced by their operational expertise and scale. The Chicago market represents a significant growth opportunity with an estimated 2,500 new locations in the long term, and management projects maintaining approximately a 30% market share there. Operational costs related to the city's environment are acknowledged but expected to be largely offset by their platform efficiencies.
This balanced approach reflects disciplined optimism with a focus on leveraging established capabilities to maximize per-unit economics rather than simply increasing machine counts per location.
References:
All points supported by the Accel Entertainment 2025 Q4 earnings call excerpts, notably from management responses to analyst questions covering Chicago licensing and market outlook 21435.
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