American gambling industry outlook remains mostly positive

Industry leaders have expressed cautious optimism about the future warning that headwinds may yet disrupt performance markers, but remaining upbeat overall

The American Gaming Association’s customary Gaming Industry Outlook has published its latest results.

The biannual study conducted by Oxford Economics seeks to gauge opinions within the industry about what the sector’s decision-makers think lies in store for them.

AGA sees industry executives mostly upbeat about the future

Although there are minor concerns in the immediate future, the overall outlook remains robust, as attested by interviewed C-level executives, insiders, and consultancies. David Forman, AGA VP of Research, released a statement in which he highlighted growth as the buzzword to look for ahead.

"After years of very strong consumer gaming spending growth, expectations around customer activity over the next three to six months have cooled considerably," Forman’s statement read, emphasizing that customers may be less willing to spend than previously thought.

Although this would require from gambling companies to adjust their short-term strategies, they remain in a buoyant position for the future in general, with most executives interviewed in the survey noting that they find their company finances in a good place that can weather any short-term disruption.

According to the results, 88% of all executives have called current affairs in the gaming industry "good" or "satisfactory," reinforcing the prevailing feeling of positivism in the sector’s ranks.

Executives believe that there will be an improvement in finances as well – with some 34% feeling confident, while the rest remaining reserved, citing the expected downturn in customer effect to slow things down in the sector.

Although gambling may be impacted, hotel and food and beverage facilities are still one of the main drivers of revenue and the main expenditure for companies in the sector, which continue to invest heavily in their accommodation and dining experiences at a ratio of 2:1 compared to live entertainment and even casino floors.

The state of the economy may yet throw a wrench in the works

However, executives are also aware of a future where economic factors could have a stronger negative impact on the sector’s operations. Some 56% of respondents said that they did worry about how the economy would be impacted in general from processes such as interest rate changes and policies ushered in by a new incumbent in the White House as early as next year.

The survey is consistent with industry expectations over the years, which are mostly based on current financial performance markers, regulatory headwinds, and major economic and political shifts. Regardless, from one year to the next, the gambling industry has shown resilience, owing to decades of experience and arguably – deep pockets.

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