Accel Entertainment is assessing the feasibility of expanding its distributed gaming operations into Chicago, following reports that the city may soon allow Video Gaming Terminals (VGTs) in licensed establishments.

The City Council Office of Financial Analysis (COFA) has estimated that the proposed framework for VGTs could generate approximately $64 million in incremental annual tax revenue for the City of Chicago. Based on existing legislative revenue splits, and further stated in the COFA’s analysis, these estimates suggest a total annual Chicago VGT gross gaming revenue (GGR) of $1B incremental to the existing $3B generated in the rest of the state, once fully implemented, which they note in their analysis may take up to 10 years based on previous studies. VGT operators currently receive a statutory split of GGR equal to 32.04% which would translate into approximately $320 million of expected incremental Net Terminal Income for the licensed VGT operator community operating in Chicago.

The Company expects that a Chicago VGT market could begin generating revenue for Accel as early as the third or fourth quarter of 2026, following completion of the legislative, regulatory, and implementation processes, with a gradual ramp-up toward steady-state performance over time.

From a capital deployment perspective, Accel believes it is well positioned to leverage its strong balance sheet, existing fixed operating infrastructure, route management capabilities, and fixed asset base to capitalize on opportunities in a Chicago VGT market, subject to customer acquisition rates and final regulatory requirements.

In anticipation of the finalization of Chicago’s VGT regulatory and operating framework, Accel will continue to assess its capital deployment strategy for Accel’s expected participation in a Chicago VGT market, including ramp timing, and marginal costs to service new accounts.

Accel will continue to monitor developments closely and plans to update the investor community as appropriate as the regulatory and operating framework emerge.

Accel Entertainment, Inc. announced the appointment of Scott Levin as Chief Legal Officer and Secretary, effective immediately.

Levin brings more than three decades of experience as an executive and senior legal advisor for a variety of high-growth public and private companies and will support Accel’s continued expansion as not only the preferred gaming operations partner of bars, restaurants, convenience stores, and fraternal and veteran establishments across the country, but also a premier operator of brick-and-mortar retail stores and casinos. As Chief Legal Officer, Scott Levin will oversee all the Company’s legal affairs and report directly to Andy Rubenstein, Chief Executive Officer at Accel Entertainment.

“Scott brings a wealth of invaluable experience to Accel Entertainment across multiple legal disciplines, and we are excited to welcome him to our leadership team as we continue to expand into new markets and adjacent gaming verticals,” said Accel CEO Andy Rubenstein. “In the gaming industry, a strong legal function is essential for long-term growth, and Scott brings the key legal experience needed to help us further strengthen our best-in-class organization.”

Levin has held senior leadership positions with several public and private companies across various industries, including serving as CEO of FTD Companies, leading the company in pursuing strategic opportunities and developing a robust legal function, and as the first General Counsel for Morton’s Restaurant Group, a publicly held restaurant holding company, helping Morton’s expand its leading hospitality footprint internationally. Levin was most recently the Founder and Managing Director of Portco Advisors LLC, where he served as outside general counsel and executive advisor for growing companies undergoing periods of significant transformation. Prior to founding Portco Advisors, Levin also served as General Counsel for companies including Torex Retail, a provider of information technology systems for the retail, fuel and convenience stores, and pub markets in Europe, and several successful startups including Atlas Power Group, Coskata, eMac Digital, and OurHouse. Levin received his Juris Doctor with Honors from George Washington University and received his Bachelor of Arts degree from Boston College.

“I have been closely following Accel Entertainment’s sustained growth since becoming a public company, and I am thrilled to join the team at such an exciting stage of development,” said Scott Levin. “Accel’s commitment to excellence and determination to fuel growth through innovation is inspiring, and I look forward to working with the incredibly talented leadership team and everyone at the company to help advance Accel’s industry-leading position in the locals gaming sector.”

As a part of this announcement, Derek Harmer, current General Counsel and Chief Compliance Officer, will now serve as Accel’s first dedicated Chief Compliance Officer and will continue to report to Accel CEO Andy Rubenstein. Harmer will continue to leverage his decades of industry insights and experience to lead Accel’s national Compliance and Government Affairs functions, supporting the company in an increasingly complex regulatory and legislative environment.

“Derek has made a tremendous impact on our organization while leading the legal and compliance teams. His success in this dedicated national role will be a key driver in supporting the Company’s commitment to compliance and growth into new regulated markets,” said Accel CEO Andy Rubenstein.