AGA survey finds 32% of CEOs positive about industry’s near-term future
CEO Bill Miller calls for continued investment and innovation as bosses cite concerns over geopolitical conflicts and inflation as potential speedbumps for progress
The American Gaming Association’s (AGA) sixth Gaming Industry Outlook biannual report has found 32% of industry CEOs believe business will improve over the next six months.
The survey, conducted in Q1 2024 between March 28 and April 10, saw 32 gaming executives respond, including executives from “major international and domestic gaming companies, tribal gaming operators, single unit casino operators, major gaming equipment suppliers, and major igaming and/or sports betting operators.”
Results from the survey found 42% (net positive) of gaming executives thought “overall balance sheet health” will improve over the next six months, but they expect the “pace of revenue growth” (13% net negative) and “new hiring” (22% net negative) to slow down.
The overall outlook of the execs was positive, with 44% categorizing the current business situation as “good” and 50% as “satisfactory.”
However, the AGA noted that these expectations are being informed by “evolving macroeconomic challenges”, with execs highlighting some key concerns that could impact growth.
These include inflationary or interest rate concerns (28% of CEOs), along with geopolitical risks (34%) and uncertainty over the economy (34%).
Elsewhere, the AGA’s Current Conditions Index stood at 102.8 for Q1, which the trade body said indicates “solid annualized real economic growth in the industry of 2.8%.”
This growth includes revenue, employment and salaries, with gaming expanding faster than the overall US economy which has reported 1.6% GDP growth in Q1.
The Future Conditions Index came in at 102.1, which the AGA said points to an “annualized industry economic activity, after controlling for underlying inflation, expected to moderately increase over the next six months.”
The US market saw its third year of record growth in 2023, with annual revenue reaching a total of $66.5bn – a 10% increase on 2022’s $60.5n.
December 2023 was the highest grossing month in the industry’s history, with revenue standing at $6.2bn.
Despite recent strong numbers, Bill Miller, AGA president and CEO, commented on the market slowing down and called for further investment and innovation in order to continue momentum.
Miller said: “Gaming’s record-setting growth over the last three years has set a new standard for industry success.
“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.”
The AGA recently underwent change, with its VP of strategic communications and responsibility, Cait DeBaun, leaving after nearly five years.