Accel Entertainment's Q2 2025: Unpacking Contradictions on TITO, Fairmount Expansion, and Market Performance

TITO implementation and impact on earnings, Fairmount Phase 2 planning and timing, Fairmount Park's performance and Phase 2 development, M&A strategy and financial capabilities, Illinois performance and market dynamics are the key contradictions discussed in Accel Entertainment's latest 2025Q2 earnings call.



Record Revenue and EBITDA Growth:
- Accel Entertainment reported record quarterly revenue of $336 million and adjusted EBITDA of $53 million for Q2 2025, with year-over-year growth of 9% and 7%, respectively.
- The growth was driven by the expansion strategy and consistent execution in core, developing, and new markets.

Illinois Market Performance:
- Illinois, Accel's largest market, saw revenue increase by over 8% to a quarterly record $245 million.
- The growth was due to strategic game enhancements and location optimization initiatives.

Montana and Developing Markets Performance:
- Montana experienced 2.6% revenue growth, while developing markets Nebraska and Georgia grew by 26.1% and 53.5%, respectively.
- Montana's scaling of content and systems supported its dominant market share, while Nebraska and Georgia grew due to superior service and products.

New Markets and Acquisitions:
- Toucan Gaming acquisition in Louisiana contributed approximately $10 million in Q2 revenue.
- The acquisition further expanded operations in the Southeast, and additional synergies are expected in the future.