Accel Entertainment's Q4 2024: Contradictions in Location Closures, M&A Strategies, and Market Growth

These are the key contradictions discussed in Accel Entertainment's latest 2024Q4 earnings call, specifically including: Location Closures Impact and Timing, M&A Strategy and Priorities, Market Growth Drivers, and Expansion Strategies:



Strong Financial Performance:
- Accel Entertainment reported record total revenue of $1.2 billion and adjusted EBITDA of $189 million for the full year 2024, representing year-over-year increases of 5.2% and 4.2%, respectively.
- The growth was driven by strategic market expansions, including entering Louisiana in November 2024 and acquiring Fairmount Park, and successful product offerings.

Market Expansion and Acquisitions:
- Accel expanded into Louisiana in November 2024 and acquired Fairmount Park in December 2024, which is expected to contribute to future revenue growth.
- These acquisitions were strategic additions to Accel's portfolio, leveraging existing capabilities and partnerships, such as the long-term collaboration with FanDuel.

Illinois Market Dynamics:
- Illinois, Accel's largest market, posted market-wide GGR growth of 4% year-over-year, outperforming the state's casinos.
- The company strategically closed underperforming locations, aiming to optimize free cash flow and focus on high-performing locations in response to a 1% increase in the state gaming tax.