AGA: Gaming CEOs satisfied with state of business environment despite financial headwinds
Trade body’s biannual Gaming Industry Outlook survey reveals executives have neutral outlook on future conditions
Executives across the regulated gaming industry in the US view the current business environment through a primarily positive lens but are notably less optimistic about the near future, according to the American Gaming Association’s (AGA) latest Gaming Industry Outlook report.
The AGA’s biannual report, conducted in concert with Fitch Ratings, surveyed 33 chief executives, 97% of whom classified the current business situation as either good (42%) or satisfactory (55%).
While the 97% figure is identical to that from the first 2023 report in April, the then split from the Gaming Industry Outlook was skewed more positive, with 62% responding ‘good’ and 35% ‘satisfactory.’
That difference was reflected in the Current Conditions Index of 100.6 – which quantifies casino gaming-related economic activity – a downtick from the 106.0 that was measured in the previous report but nonetheless a slight 0.6% year-over-year (YoY) growth rate, an indicator the industry continues to display strength in the face of macroeconomic headwinds.
“The significant expansion and record demand for legal, regulated gaming in the post-pandemic era have allowed our members to consistently invest in our product and people to deliver innovative entertainment options for American adults,” said AGA president and CEO Bill Miller.
Despite the overall health of the industry, gaming executives portrayed a markedly more neutral outlook on the immediate future, with 58% expecting business conditions to remain the same over the next three to six months.
The tepid forecast is indicative of the US economy as a whole, which is projected to experience a mild recession beginning in Q4, according to Oxford Economics.
“Gaming CEOs remain focused on delivering world-class entertainment options against the backdrop of broader economic uncertainty,” Miller said.
The executives expressed mixed opinions regarding the state of their individual balance sheets over the next 3-6 months, with only 26% expecting an improvement.
Inflation or interest rate concerns (58%) represent the biggest challenges facing the industry, followed by overall economic uncertainty (55%).
The Gaming Industry Outlook survey was conducted between August 28 and September 6, 2023, and included executives from across the entire spectrum of stakeholders throughout the space.