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Accel Entertainment posted Q1 2026 revenue of $351.6m, up 8.5% year-on-year, as the Chicago-based terminal operator delivered its highest-ever first-quarter adjusted EBITDA of $53.8m.
Net income for the quarter was $14.7m, broadly flat compared with $14.6m in Q1 2025. Adjusted EBITDA rose 8.6% from $49.5m the prior year period. The company ended March with 4,540 locations and 28,353 gaming terminals, up 3.4% and 4.3% respectively year-on-year.
Illinois Holds the Line
Illinois, Accel’s largest market, generated $252.8m in revenue for the quarter, up 8.3% year-on-year. Excluding Fairmount Park, Illinois revenue grew 6% year-on-year, driven by new machine placements, location optimisation, and the continuing rollout of ticket-in, ticket-out (TITO) technology. Hold-per-day in the state rose to $962, from $885 in Q1 2025.
The company’s terminal count in Illinois edged down to 15,413 from 15,624 a year earlier, reflecting location mix changes rather than contraction in active sites. Nevada casinos hit record gaming revenue of $15.8bn in 2025, consistent with the structural expansion in regulated regional gaming that Accel continues to capture.
CEO Andy Rubenstein pointed to Chicago as the most significant near-term opportunity in the company’s history:
The placement of gaming terminals in the city of Chicago remains one of the most exciting near-term opportunities in our history. The Illinois Gaming Board is actively processing applications, and we are signing up Chicago locations in anticipation of final regulatory approvals.
Rubenstein said Accel’s existing infrastructure, route management platform, and local relationships position it to move quickly once approvals come through. No regulatory timeline has been confirmed.
Developing Markets Drive Double-Digit Growth
Outside Illinois, the company’s developing markets delivered the quarter’s most striking numbers. Nebraska revenue grew 57.4% year-on-year to $11.4m, supported by new machine placements and proprietary content. Georgia rose 43.0% to $6.2m, with the state’s terminal count reaching 1,136, up 34.6% year-on-year.
Nevada contributed $29.3m, up 6.1%, though hold-per-day in the state fell to $713 from $802 a year earlier. Accel expanded its Nevada presence through the acquisition of Dynasty Games in late 2025, adding 20 locations and 120 terminals in northern Nevada, and through a new route partnership with Rebel Convenience Stores covering 55 locations and more than 400 machines in southern Nevada.
Louisiana posted $10.1m, up 12.4%, with Rubenstein noting that bolt-on acquisition pipeline activity remains active as seller pricing expectations have become more favourable. Montana fell 1.2% to $40.6m; net gaming revenue in the state grew to $39.4m from $37.3m while manufacturing revenues dropped to $1.2m from $3.9m.
Total gross margin rose to 31.09% from 30.98% year-on-year as developing markets expanded their contribution to the overall portfolio.
Fairmount Park and Capital Allocation
Fairmount Park Casino and Racing launched table games in April 2026, broadening the property’s entertainment offering as its second racing season commenced. The launch caused a timing shift in purse expense recognition that reduced Q1 adjusted EBITDA by $2.0m and net income by $1.5m; on a like-for-like basis, adjusted EBITDA would have been $55.8m and net income $16.2m.
Accel repurchased 1.1 million Class A-1 shares for $12m during the quarter. Cash stood at $274m at March 31, 2026, with net debt of $306m and net leverage of approximately 1.4 times trailing twelve-month adjusted EBITDA of $214.4m. Free cash flow was $20.2m, up from $18.7m in Q1 2025, at a conversion rate of 37.6%.
BetMGM posted record full-year 2025 revenue of $2.8bn, while Caesars Entertainment reported record digital growth in Q4 2025, reflecting the sustained momentum across regulated US gaming that Accel’s Q1 numbers reinforce at the distributed gaming level.
Outlook
Rubenstein set out four priorities for the remainder of 2026: organic growth in core markets, margin improvement in developing markets, disciplined bolt-on acquisitions, and consistent free cash flow conversion. With net leverage at 1.4 times and $274m in cash, the balance sheet provides room to pursue tuck-in deals without material balance sheet risk.
The Chicago market opening remains the single largest variable in Accel’s near-term growth trajectory. The Illinois Gaming Board is processing location applications, but no opening date has been indicated.
Source: Accel Entertainment, Inc.
