Published on: January 8, 2026, 07:54h.
Updated on: January 8, 2026, 07:54h.
- Chicago may approve licenses for video gaming terminals (VGTs) to enhance tax revenue.
- Accel Entertainment is currently a leading distributed gaming operator in Illinois.
- The company suggests it could start generating revenue later this year if VGTs are approved by the city.
Accel Entertainment (NYSE: ACEL), a prominent distributed gaming company, announced today that it is exploring potential opportunities in Chicago as the city considers the approval of video gaming terminal (VGT) licenses.
To increase tax revenues, officials in Chicago are considering a proposal to legalize VGTs. According to the City Council Office of Financial Analysis (COFA), this could yield an estimated $64 million in annual tax revenue, indicating a valuable market for both license holders and gaming companies like Accel.
“According to current legislative revenue splits and as detailed in the COFA’s analysis, this projection anticipates a total annual gross gaming revenue (GGR) of $1 billion for Chicago’s VGTs, on top of the existing $3 billion generated statewide, once fully operational,” stated Accel in their announcement.
The Chicago-based company noted that while the COFA analysis suggests it may take up to ten years to fully implement the VGT program, Accel could begin earning revenue as early as the third or fourth quarter of this year if the approval is expedited.
Accel’s Substantial Presence in Illinois
Accel Entertainment has established a considerable presence in its home state, relying on Illinois for approximately 75% of its income.
With one of the industry’s largest gaming machine portfolios, the company has diversified its geographical reach through acquisitions, expanding into markets such as Louisiana and Northern Nevada. Accel also operates in Georgia, Montana, and Nebraska.
Despite already depending heavily on Illinois for sales, the prospect of entering the Chicago market is particularly enticing. As the third-largest city in the United States, it has a vibrant gaming culture. Investors will be pleased to know that Accel intends to approach this potential expansion with fiscal prudence.
“From a capital deployment standpoint, Accel believes it is strategically positioned to take advantage of opportunities in Chicago’s VGT market, depending on customer acquisition rates and final regulatory frameworks, utilizing its robust balance sheet, established operating infrastructure, route management systems, and fixed asset base,” the company stated.
Accel Keeping a Close Eye on Developments
In Illinois, VGT operators currently receive a revenue split of 32.04% of GGR. Therefore, if Accel’s anticipation of Chicago’s VGT market reaching $1 billion is realized, this could lead to an expected incremental Net Terminal Income of $320 million for licensed operators in Chicago.
Should Accel capture a notable fraction of this revenue, it could act as a significant catalyst for a stock that analysts consider undervalued. For the time being, the company is closely monitoring the developments in Chicago.
“As we await the finalization of Chicago’s VGT regulations and operational guidelines, Accel will continue to review its capital deployment strategy for prospective participation in the Chicago VGT market, considering factors such as implementation timing and the marginal costs associated with onboarding new accounts,” they continued in their statement.