What happened with ACEL today?
No read yet
Uses news and trading volume to explain the day’s move and how it relates to the market.
Stop guessing. Get the call, a three-month target price, the best and worst cases, and a source for every claim.
Accel Entertainment, Inc. lets bars, restaurants, truck stops and other local businesses offer gaming without buying or maintaining the equipment themselves. It owns and installs the terminals, handles cash collections and compliance, and keeps the machines running under long-term exclusive contracts. Players supply the money; Accel and the host businesses share net gaming income, with the split set by law in some states and negotiated in others. Gaming at partner locations accounts for the vast majority of revenue.
The business depends on how much customers play and on keeping its location contracts. Illinois supplies most of the company’s revenue. State and local rules determine where terminals may operate, which games are allowed and how many machines a location can host; Accel and its partners also need the required licenses and approvals.
Accel also owns Fairmount Park – Casino & Racing in Illinois, a smaller business earning money from casino play, racing wagers and related services. Its sportsbook operates under a revenue-sharing agreement with FanDuel, and the property’s racetrack license supports its casino license.
The risk section is the longest, dullest part of the filing. This keeps only what can really hurt you: where it hits, how hard, when it plays out.
Every company claims an edge. Each one is checked against hard numbers like margins and returns: which hold, and which line gives way first.
Accel Entertainment’s results depend chiefly on spending at Illinois gaming terminals, growth in location contracts, and state gaming taxes and regulation—not on the businesses of the supplied candidates.
Fed Interest Rate Decision
Fed rate decisions track the cost of borrowing across the economy; for Accel Entertainment, they can change interest paid on its $612 million of debt and the cash left for gaming operations and investment.
Expected4.0%Last release4.0%
If it comes in above expectations
If the rate is above the estimate, borrowing costs may rise on debt that reprices, increasing interest expense and leaving Accel with less cash for its gaming operations and investment.
If it comes in below expectations
If the rate is below the estimate, borrowing costs may fall on debt that reprices, easing interest expense and leaving Accel with more cash for its gaming operations and investment.
Accel Entertainment, Inc. earningsThis company
Accel Entertainment earns mainly by operating gaming terminals at partner locations, and its report will show whether growth from more locations and terminals offsets weaker play in some markets and the costs of running its routes.
Read distributed-gaming revenue growth alongside hold-per-day, the average net gaming revenue per location per day. Revenue growth with hold-per-day steady or rising would show that existing locations are contributing as well as new terminals and locations; revenue growth with hold-per-day falling would mean expansion is masking weaker play in some markets, leaving the returns on added equipment and service costs unproven.
