The American Gaming Association (AGA), the United States gaming industry association, teamed up with the leading market analyst Fitch Ratings to release a new edition of its Gaming Industry Outlook. In the latest edition, AGA said that most of the executives within the sector are optimistic about the industry’s future.
What CEOs Think about the Future of Gaming
The latest global events have sparked concerns about the future of the gaming industry. The rising cost of living caused by the war in Ukraine has led to ridiculous electricity prices that have greatly impacted the business of brick-and-mortar casinos. In addition, certain businesses are yet to recover from the aftermath of the devastating COVID-19 pandemic.
Yet, despite the difficulties, many gaming industry CEOs remain optimistic about the sector’s business situation. In the latest edition of the Gaming Industry Outlook, the AGA reported that many executives believe that the industry will manage to adapt.
According to AGA’s respondents, the situation is not as bad as some make it out to be. Out of all CEOs questioned by the association, 68% responded that the current business situation is good. Another 28% believe that there are some things to be desired but the current situation is satisfactory.
Meanwhile, a stellar 92% believe that the conditions will continue to improve within the next 3-6 months. Out of all CEOs, 38% are optimistic about the conditions after that period. Only 8% of the respondents believe the situation will become worse.
There Might Be Difficulties
When asked about what difficulties to expect, 65% of the executives said that supply chains are likely to be a major limiting factor. 62% were concerned about the ongoing inflation, while 50% are wary of the mass labor shortages across all gambling verticals.
CEOs agreed that the current credit environment is suboptimal but hope that balance sheets will improve within a few months.
Bill Miller, AGA’s president and chief executive, described the industry’s overall spirit as “cautiously optimistic.” He noted that for now, the industry is managing to weather the volatile economy thanks to its loyal customers.
Looking ahead, future consumer confidence and spending remain an outstanding question for our continued growth.Bill Miller, president, AGA
The AGA described customer activity as “a major question mark.” About the same number of companies expect contraction and expansion, the association said.
The association also addressed the matter of gaming providers and said that none expect a decrease in sales. The AGA attributed the positive outlook to the strong growth over the last two years that has provided the industry with a robust base.