Accel’s Strategic Push into Louisiana’s Gaming Market
Accel Entertainment, a leading player in the distributed gaming industry, has officially expanded its footprint in the southeastern U.S. by acquiring a majority stake in two Louisiana-based gaming operators: Toucan Gaming, LLC and LSM Gaming, LLC. This acquisition strengthens Accel’s presence in the rapidly growing Louisiana market and further demonstrates the company’s ambition to lead in non-casino gaming operations. This $40 million investment provides Accel with 85% ownership of both entities, enabling them to add to their portfolio of gaming terminals across truck stops and smaller venues.
Expanding Reach with Strategic Locations and New Terminals
With this acquisition, Accel gains control over an extensive network of gaming terminals. This includes 13 truck stop locations with a total of 450 gaming terminals, along with 60 smaller venues, each equipped with three machines, adding up to 180 additional terminals. This expansion not only boosts Accel’s revenue potential but also diversifies its presence in key, high-traffic locations across Louisiana. The projected revenue for this new acquisition stands at approximately $25 million for 2025, with an anticipated Adjusted EBITDA of $6 million, marking a promising return on investment.
Building on Shared Values and Local Expertise
Accel’s CEO, Andy Rubenstein, has expressed confidence in the acquisition, highlighting the alignment of values between Accel and Toucan Gaming. With a well-established reputation in Louisiana, Toucan Gaming brings both local expertise and a dedication to high-quality gaming experiences. Stan Guidroz, Toucan’s CEO, will continue to lead the brand under Accel’s umbrella, leveraging his knowledge of the regional market and player preferences. This continuity promises a smooth transition and preserves the unique appeal that Toucan and LSM Gaming have built over the years.
Enhancing the Southeastern U.S. Market Presence
Accel’s acquisition aligns with the company’s broader strategy to expand in the southeastern U.S. market. Known for its full-service gaming solutions tailored to non-casino venues, Accel is well-positioned to maximize its impact through strategic growth in Louisiana. The acquisition not only solidifies Accel’s presence in this vibrant gaming market but also opens up new possibilities for innovation and enhanced customer engagement. With strong performance in its core market of Illinois and growing interests in Nebraska, Accel is rapidly becoming a prominent distributed gaming operator nationwide.
Strong Financial Performance and Future Growth
Accel’s recent financial performance reflects its strategic success. For Q3 2024, Accel reported revenue of $302 million, a 5.1% increase year-over-year, with an adjusted EBITDA growth of 3.9%. These gains underscore Accel’s adaptability and resilience within the gaming landscape, even amidst regulatory changes, like the recent 1% tax increase in Illinois. With the Fairmont Park acquisition and the introduction of a sports betting license and casino plans, Accel’s growth trajectory is poised to continue.
Accel’s expansion into Louisiana, coupled with its proactive moves in other states, demonstrates its commitment to long-term growth and market diversification. By consistently focusing on strategic acquisitions and innovative market entry, Accel is setting itself up as a formidable player in the distributed gaming sector.
