Company: ACEL
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001698991-25-000034
Chunk: 65

Company: Accel Entertainment, Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Item 2
Chunk 65
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 a valid sales tax permitGeorgia2020Bulldog Gaming•Operate gaming terminals which are skill-based coin-operated amusement machines with winnings paid in points that may be redeemed for noncash merchandise, prizes, toys, gift cards, or noveltiesLouisiana2024Toucan Gaming•Truck stop gaming parlors (up to 50 gaming terminals)•Establishments with a liquor license (up to 3 gaming terminals)–Bars/restaurants/retail–Fraternal organizations–Veterans’ organizationsIowa2021Accel Entertainment•Operate amusement concessions, including games of chance and games of skill, which we define as gaming terminals•Bars, taverns, and restaurants with a certain class of liquor license are permitted to operate up to four electrical or mechanical games of chancePennsylvania2023Accel Entertainment•Licensed to operate at qualified truck stops•Actively exploring opportunities 

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Distributed Gaming Competitive Landscape

We compete in the distributed gaming landscape on the basis of the responsiveness of our service to our locations and players, and the popularity, content, features, quality, functionality and reliability of our products. In the distributed gaming industry, we generally operate in markets where our terminal revenue splits are either statutorily determined or negotiated, as follows:

Statutory SplitsNegotiated SplitsNet terminal income splits are statutorily predetermined; minimum and maximum wagers are mandated by the applicable governing bodiesNet terminal income splits are negotiated Pricing is not considered a factor as revenue splits with our locations are mandated by lawPricing is a driver in contract negotiations as all revenue splits are negotiatedLocation and customer experience are key differentiating factors for selecting us over our competitorsOur focus on player appeal, customer service and reputation are also key factors impacting competitionOur markets with statutory splits are: Illinois, Georgia, PennsylvaniaOur markets with negotiated splits are: Montana, Nevada, Nebraska, Iowa, Louisiana

Macroeconomic Factors 

Ongoing interest rate uncertainty, persistent inflation and increased and/or reciprocal tariffs may increase the risk of an economic recession and volatility in the capital or credit markets in the U.S. and other markets globally. Our location partners may be adversely impacted by changes in overall economic and financial conditions, and certain location partners may cease operations in the event of a recession or inability to access financing. Furthermore, our revenue is largely driven by players’ disposable incomes and level of gaming activity, and economic conditions that adversely impact players’ ability and desire to spend disposable income at our locations partners may adversely affect our results of operations and cash