The American Gaming Association released its biannual Gaming Industry Outlook in partnership with Fitch Ratings on Tuesday, with financial data and executive attitudes giving cause for cautious optimism across the casino landscape.
The vast majority of gaming executives reported good (42%) to satisfactory (55%) business conditions in the third quarter of 2023, with the former number down from 62% in Q1 and the latter up from 35%. Of the executives surveyed, 58% said they expected future business conditions in the next six months to be about the same, with the rest evenly split between those who expect better or worse conditions.
These attitudes were reflected in Fitch’s Current Conditions Index, which showed growth of 0.6% in casino-related economic activity in Q3 relative to Q2. However, Fitch’s Future Conditions Index predicted that industry growth will slow a bit over the next six months.
Post-pandemic pace slows
According to the AGA’s full fall report, “the U.S. gaming industry continues to grow but has decelerated from the strong pace of sustained expansion in the wake of the pandemic.”
Most survey respondents indicated that while they expect their balance sheets and capital spending will increase over the next three to six months, they expect the pace of revenue growth and hiring to slow. Among the areas that they perceive as a “priority area for investment” in the coming months, food and beverage was the overwhelming leader at 67%, followed by hotels, slots, and live entertainment.
“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,” AGA President and CEO Bill Miller said in a press release. “Gaming CEOs remain focused on delivering world-class entertainment options against the backdrop of broader economic uncertainty.”
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