AMERICAN GAMING ASSOCIATION
The Gaming Industry Outlook
Gaming CEOs share their views on the current and future state of the industry
BY DAVE FORMAN
As we reach the home stretch of 2024 , it ’ s clear that the U . S . commercial gaming sector will generate record gaming revenue for the fourth straight year , a testament to the continued health of America ’ s gaming industry and its appeal to consumers and , as we recently saw , voters .
Legal gaming options continue to be made available in new markets , most recently with Missouri legalizing sports wagering via referendum this November . While online sports betting and iGaming are now driving almost all yearover-year growth and expansion discussions , brick-and-mortar revenue will also at least flirt with a new high and voters in Virginia recently approved a new property in Petersburg .
How will the industry continue its recordsetting momentum as we wrap up 2024 and embark on a new year ? Who better to ask than gaming CEOs themselves ?
As the industry ’ s premier trade association , the AGA regularly asks our member CEOs how they view today ’ s business environment , their outlook over the next few quarters , and what their biggest challenges are in navigating current operating dynamics . AGA ’ s Fall 2024 Gaming Outlook , featuring a survey of member CEOs , shows gaming executives remain positive on current business conditions but are becoming increasingly cautious on future growth expectations after the torrid growth of the past few years .
Let ’ s examine a few of the report ’ s major takeaways .
Most executives ( 88 percent ) view the current state of the gaming industry as either good or satisfactory . However , these executives also have a more conservative outlook on future business conditions , with respondents split on whether they expect conditions to improve over the next three to six months ( 3 percent net positive ).
Since Q1 2024 , gaming executives ’ sentiment has shifted in several significant areas . A greater number of respondents now expect a de- cline in customer activity over the next three to six months ( 28 percent net negative , down from 4 percent net negative in Q1 ). More executives also expect a decrease in the pace of hiring ( 56 percent net negative ), revenue growth ( 16 percent net negative ), and capital investment ( 15 percent net negative ) than expect an increase .
Despite these tempered expectations , panelists expect improvements in overall balance sheet health ( 34 percent net positive ) and are also encouraged about access to credit , with more executives reporting access to credit as easy ( 19 percent ) rather than restrictive ( 3 percent ) for the first time in two years .
Hotel ( 56 percent ) and food and beverage facilities ( 56 percent ) continue to be the main and growing focus of greaterthan-normal capital investment among operators , followed by live entertainment ( 28 percent ) and casino floor slots ( 22 percent ). Meanwhile , gaming equipment suppliers now believe their pace of capital investment and game sales will decelerate ( 13 percent net negative ).
Notably , these expectations are informed by evolving macroeconomic challenges , with uncertainty of the economic environment vaulting to the top of executive concerns ( 56 percent , up from 34 percent in Q1 ), followed by state regulatory concerns ( 31 percent ) and inflationary or interest rate
concerns and geopolitical risk ( both 34 percent ).
Gaming is entering 2025 with greater uncertainty around future growth and expansion than we ’ ve seen since the pandemic . Despite that , the work that has been put in across the industry over the past few years to introduce new players to both online and brick-and-mortar gaming , invest in new products and experiences , and improve perceptions of the industry leave us well positioned for the next chapter .
David Forman is vice president , research , at the American Gaming Association .
10 Global Gaming Business DECEMBER 2024