Accel Entertainment Eyes Chicago VGT Opportunity by 2026

Accel Entertainment is assessing the feasibility of expanding its distributed gaming and local entertainment model into Chicago, as officials consider allowing video gaming terminals in licensed venues to boost city revenue. The company signaled that the potential market would require legislative and regulatory clearance before any rollout, but indicated that a path to deployment could begin within the second half of 2026 if proposals advance as anticipated.

City Projections and Expected Market Economics

Recent analyses from the City Council Office of Financial Analysis projected that a Chicago VGT program could generate approximately $64 million in incremental annual tax revenue. As stated in the company’s press release, the office further estimated that full implementation of a citywide VGT framework could yield $1 billion in annual gross gaming revenue incremental to the existing $3 billion generated by similar terminals across the rest of Illinois. The analysis suggested that full build-out may take up to a decade, reflecting ramp periods observed in previous studies of market adoption.

Under the current statewide structure, VGT operators receive 32.04 percent of GGR. Applied to Chicago’s scenario, that distribution formula would translate into approximately $320 million of incremental net terminal income for licensed operators once the city’s terminals reached maturity. Accel indicated that the ramp to full market output would take time but said it anticipates that an emerging Chicago market could begin producing revenue as early as the third or fourth quarter of 2026, contingent on regulatory timelines.

Accel described the prospective market in terms of operational fit, noting, “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.” The company added that it would continue evaluating capital deployment strategy as regulatory details are finalized, including ramp timing and marginal service costs.

Illinois Context and Accel’s Existing Footprint

Illinois legalized video gambling through the Video Gaming Act in 2009, though Chicago maintained separate rules prohibiting terminals within city limits under Chapter 8-12 of the Municipal Code. Despite the exclusion of Chicago, Illinois’ VGT segment has expanded into a substantial revenue line for both the state and route operators. State VGT revenue rose 4 percent to $263.9 million in November 2025, while total VGT wagering increased 1 percent to $2.86 billion during the same period.

Accel generated $239.0 million in revenue from Illinois in the third quarter of 2025, representing 72.5 percent of its total revenue, with 15,641 terminals installed across 2,728 locations statewide. The company highlighted its route density, asset base and experience in non-casino gaming settings as indicators that it could service a Chicago market effectively, provided regulatory conditions and customer acquisition rates move into alignment.

With Chicago’s 2026 budget approval acknowledging VGTs as a potential revenue tool, discussions have shifted toward defining the regulatory and operational structure required for implementation. Accel has begun evaluating the capital requirements associated with deployment in Chicago, including equipment procurement, customer onboarding and servicing logistics. In its updates, the company indicated it would monitor proceedings and update the investor community as the process develops.

While projected tax contributions and operator economics suggest material commercial potential, city analysts noted that achieving full maturity would require several years of gradual expansion as VGT locations are licensed, terminals are deployed and player participation grows across Chicago’s neighborhoods.