Company: ACEL
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001698991-25-000034
Chunk: 13

Company: Accel Entertainment, Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Item 1
Chunk 13
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0 million in HBC Gaming LLC (“HBC”), in exchange for a 5% equity interest. HBC is a local entertainment company based in Hampton, New Hampshire that specializes in providing a variety of gaming services to its customers. The Company’s 5% investment qualifies for equity method accounting. The Company recorded its initial investment of $5.0 million within other assets on the condensed consolidated balance sheets. The Company also has obligations to fund additional equity investments in the event certain construction and development milestones are met in an amount up to 10% ownership of HBC, on an undiluted basis, at an additional cost of up to $6.5 million.The Company recorded a loss from unconsolidated affiliates of less than $0.1 million for the three and six months ended June 30, 2025.Revenue recognition: The Company primarily generates revenues from the following types of services: gaming terminals, amusements, and ATMs. The Company also generates manufacturing revenue from the sale of gaming terminals and associated software, as well as revenue from its casino & racing operations. Revenue is disaggregated by type of revenue and is presented on the face of the condensed consolidated statements of operations and comprehensive income.  

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Table of ContentsAccel Entertainment, Inc. and SubsidiariesNotes to Condensed Consolidated Financial Statements — (Continued)

Total net revenues for the three and six months ended June 30, 2025 and 2024 is disaggregated in the following table by the primary states in which the Company operates.(in thousands)Three Months EndedJune 30,Six Months EndedJune 30,2025202420252024Net revenues by state:Illinois$245,434 $227,093 $478,913 $451,956 Montana40,107 42,583 81,243 80,724 Nevada27,078 29,322 54,695 58,531 Louisiana9,630 — 18,655 — Nebraska7,881 6,249 15,111 12,083 Georgia4,814 3,137 9,139 5,761 Other965 1,029 2,065 2,175 Total net revenues$335,909 $309,413 $659,821 $611,230 Recent accounting pronouncements: In May 2025, the Financial Accounting Standards Board (“FASB”) issued Accounting