Company: ACEL
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0001698991-25-000011
Chunk: 148

Company: Accel Entertainment, Inc.
Filing Date: 2025-03-03
Form: 10-K
Item: Item 1A
Chunk 148
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, developing and expanding into these new businesses, our limited experience with casino design, development and operations and racing operations may increase the risk that we will not be successful. For example, we have not previously been required to comply with the regulatory and licensing regimes associated with casino operations or racing, which may present operational challenges and material costs, as well as reputational risk. 

15

Our casino development project may require significant capital, and the incurrence of additional debt, and we may not receive the intended benefits of such capital investments.  We will also be subject to various design, construction and development risks, such as engineering and environmental problems; a shortage of building materials and equipment; regulatory delays or reviews; and construction accidents.  Any preliminary design or rendering of our casino could also be subject to change due to cosmetic, marketing, permitting, zoning and financing issues.  Any of the foregoing may have a material adverse effect on us or our results of operations, cash flow, or financial condition. 

Horse racing is highly dependent on people not only attending outdoor live horse races, but also wagering on and sponsoring them. If interest in horse racing declines due to external factors such as unfavorable weather conditions, shifting consumer preferences or accidents, a resulting decrease in attendance, wagering and sponsorship demand, along with negative publicity and insurance issues generated from potential injuries and/or litigation, could have a material adverse impact on our horse racing business. In addition, our horse racing operations depend on agreements with various groups, including food and beverage professionals and groups that represent horsemen, such as the Illinois Thoroughbred Horsemen's Association and the Illinois Horsemen's Benevolent & Protective Association. Any failure to maintain or renew agreements with such groups, or a deterioration in our relationship with them, could adversely affect our horse racing business. 

Our horse racing and casino operations also depend on the public perception of fairness and integrity. Preventing cheating and erroneous payouts requires oversight and security processes that are impervious from manipulation. A lack of trust in the fairness of the horse racing or casino industries could have a material adverse impact on our operations.

Our distributed gaming industry operations are located in markets where terminal revenue splits are either statutorily determined or negotiated. For our markets with negotiated splits, our revenue could be impacted by contract negotiations and our revenue in markets with statutory splits could decline if such jurisdictions move towards negotiated splits or reduce our statutory split.

In the distributed gaming industry, we generally operate in markets where our terminal revenue splits are either statutorily determined or negotiated. Our markets with