Gaming industry leaders are bullish on the future, according to the American Gaming Association’s Gaming Industry Outlook survey.
According to the survey, executives were positive about U.S. gaming industry’s key performance indicators. Industry leaders cited rising revenues, stronger balance sheets, increasing consumer activity, and decreasing promotional spending as indications of the industry’s health.
The AGA Gaming Industry Outlook was prepared by Oxford Economics and provides a timely measure of recent industry performance and future expectations. The third-quarter survey was conducted between August 26 and September 8, with responses from 28 senior executives representing international and domestic gaming companies, tribal operators, equipment suppliers, and igaming and sports betting firms.
The Gaming Conditions Index indicated that real economic activity, measured by key indicators including gaming revenue, employment, wages, executive sentiment, and casino hotel event activity, increased 3.1% year-over-year in third quarter. This marks the first quarterly expansion since late 2024 and a reversal from the modest contractions seen this year.
Key findings:
- Overall gaming executive sentiment rose to a net positive 7.1% in the third quarter, the highest since third qurter 2022, with outlooks improving across nearly all business indicators.
- The near-term outlook shifted sharply to 11% net positive, up from -18% this year.
- 26% of respondents expect stronger business conditions over the next six to 12 months – the most optimistic long-term view in three years.
“Following a strong summer that underscored the resilience of gaming consumers and the entertainment value of gaming products, the industry’s outlook is the most positive in years,” AGA Vice President of Research David Forman said in a statement. “While executives are increasingly concerned about regulatory and tax challenges, they plan to continue reinvesting in capital spending to provide players with compelling gaming options and amenities.”
As overall economic uncertainty continues to be the primary factor limiting industry operations, executives expressed increasing concerns about state-level regulatory and tax pressures. Half of respondents (50%) cite state regulatory concerns as a factor limiting operations, the highest level since the measure was first tracked in early 2023. Specifically, 46% cited tax or regulatory policy changes as pressuring margins, up from 36% this year.
