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The Accel Advantage. THE COAM Opportunity for the GA Corporate C-Store Market. 10/23/2019. 1. Confidential Proposal.
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The Accel Advantage THE COAM Opportunity for the GA Corporate C-Store Market 10/23/2019 1 Confidential Proposal For clarification purposes, the employees appearing in these photographs are prohibited from playing video gaming terminals for recreational purposes at any and all licensed establishments in the State of Illinois, regardless of whether such games are operated by Accel. The employees depicted in these photos are not playing the video gaming terminals, and are seated at the terminals for demonstrative purposes only.
Regulated Route Gaming Markets: Overview • Route Gaming– the business of operating electronic gaming machines (“EGMs” or “slot machines”) outside of casinos, primarily in retail locations such as bars, restaurants, C-stores and grocery stores. • Regulated Markets – markets where a state agency monitors all events within the EGMs, approves all entities & individuals that own, operate and host EGMs, and creates and enforces all rules that pertain to the EGMs and the revenue they generate. • Existing Regulated Route Gaming Markets – currently there are 9 markets in the US (OR, NV, MT, SD, IL, LA, WV, PA, GA). Annual Gaming Revenue (Net Funds) by State Non-Bar/Restaurant Player Growth Net Funds Year
GA COAM Class B Market: What is It? • COAMs are legal in GA and regulated by the Georgia Lottery Corporation (GLC) • Retail locations that host COAMs must receive a Class B location license from the GLC • Class B Master Licensees are independent of Locations and own, manage and transport Class B COAMs • 4,900 Licensed Locations host 22,900 legal Class B COAMs (licensed locations can host up to 9 Class B COAMs (some municipalities limit to 6 COAMs per location)) Players deposit cash into the COAMs and receive a voucher when finished playing. Players can only redeem vouchers forstore merchandise (excluding alcohol, tobacco or firearms). Class B Coin Operated Amusement Machines (COAMs) are digital video games that provide a traditional “Vegas Slots” experience.
The Georgia Route Gaming Opportunity • IL & GA are comparable jurisdictions • Similar population: • IL = 12.7mm (Chicago = 2.8mm) • GA = 10.5mm • Relatively similar # of total EGMs in State (Ex-casinos): • IL = 29,000 • GA = 22,900 Georgia versus Illinois Comparison Opportunity Capture this growth potential with: • Attractive, distinct gaming areas • Liquid redemption options • IL generates much greater gaming $ • Total Funds-In FY 18: • IL = $5.8bln ($200k/machine) • GA = $2.4bln ($105k/machine)
Economics of a Single COAM: Breakdown The State regulates the allocation and distribution of profits. • Hold Per Day (HPD) - the $ amount a COAM retains after all play in a 24 hour period (cash-in minus cash-out) • # of COAMs/Establishment – Maximum = 5 COAMs, Accel Average/Establishment = 4.5 VGTs • Net Terminal Income (NTI) – HPD x # of VGTs • Split – the Establishment Owner and the Terminal Operator each receive 45% of NTI
Create a gaming experience that mirrors your premium C-Store
Accel Entertainment Partnerships • Accel is the premier gaming Truck Stop, Restaurant, and C-store operator in Illinois with 26% of all C-store gaming locations, 52% of all bar restaurant locations, and 25% of all Truck Stop gaming locations. • Accel is the Terminal Operator of choice for 5 of the top 10 highest performing Truck Stops in Illinois. • Euro Garages, Delta Sonic, Speedway, 7-11, Chili’s, Buffalo Wild Wings, Graham Enterprise, Casey’s and Hucks are all strategic partners with Accel. • Accel’s leading charitable partner is Folds of Honor.