May 1, 2024 3 min read

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American Gaming Association Highlights Industry Outlook and Challenges

Nearly all of the surveyed gaming executives were optimistic about the current business environment

The United States gambling industry association, the American Gaming Association (AGA), released its latest Gaming Industry Outlook, disclosing a number of insights and details regarding the current business environment and the potential outlook for the sector in the country. The Association disclosed details regarding its latest report Tuesday, revealing that nearly all of the gaming executives who have been surveyed deemed the current business environment as “good” or “satisfactory.”

The response of 44% of the executives acknowledged the environment as good, while 50% labeled it satisfactory. The result did not come as a surprise and in-fact echoed similar results reported for the third quarter of 2023.

To further complement the positive outlook, more executives who were surveyed for the latest report admitted to being optimistic about the future of the gambling sector. Some 32% of the CEOs of gambling businesses that were surveyed predicted improvements in the business conditions for the upcoming six months. This result marked a notable increase when compared to the 20% figure reported in Q3 of 2023.

Additional insights from the Gaming Industry Outlook reveal that half of the operators’ CEOs anticipate an increase in the capital investments in hotels over the next year. Compared to the previous report, more executives predicted that capital investments in meetings, conventions and table games would be higher than normal levels. “Meanwhile, 44% of CEOs expect increases in food and beverage investment, down from 67% in Q3 2023,” explained the AGA.

The Gambling Sector Enjoys Record Growth

According to the AGA, more executives were positive about the improvement of their overall balance sheets for the next six months. Still, some estimated that the hiring and the increase in revenue may slow their pace. “These expectations for decelerating growth have influenced expectations for increases in capital investment and gaming units in operation, with smaller net positive sentiments than before,” added the Association.

Gaming’s record-setting growth over the last three years has set a new standard for industry success.

Bill Miller, CEO and president at AGA

Bill Miller, AGA’s CEO and president, spoke about the exponential success of the gambling sector over the last few years, explaining that it has set a new standard for success for the vertical. “However, as we enter a period of market normalization, continued investment and innovation in offering world-class, responsible entertainment experiences will be required to maintain industry momentum,” added Miller.

In contrast to the positive prediction, gaming equipment suppliers were a bit more pessimistic when compared to the previous edition of the report. Some 13% were pessimistic about the sale of new equipment and gaming units. On the bright side, they remained optimistic about the potential capital investments.

Co-editor

William Velichkov is a research-driven writer. His strengths lie in ensuring factual accuracy, vetting government documentation and reaching out to regulators and other officials. He is particularly fond of financial reporting, the sports betting industry, B2B partnerships and esports betting developments. William is a strong asset to the GamblingNews team as he adds a bedrock to our reporting.

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