Home Gambling Industry American Gaming Association cites positive outlook for industry

American Gaming Association cites positive outlook for industry

22 Apr 2022
3 min. read

A look at a casino's swimming pool.

The pandemic was a difficult time for most casinos in the United States, but things are finally looking up. According to a new survey by the American Gaming Association (AGA) which interviewed some of the industry’s top executives, there is light in the end of the tunnel as the industry is beginning to emerge from the impact of the COVID-19 shutdowns and capacity limitations.

In the survey carried out in collaboration with Fitch Ratings, the trade group interviewed 24 members who considered current visitation rates, economic factors, and executives’ own opinions on how far the industry is from making a recovery. No individual interviewed by AGA described the situation as "poor," and an increasing number, 67% in fact, are now inclined to say that the current business climate is "good."

This indicates the broader strength and resilience of the industry, but also the growing positivity in the sector. For instance, four out of ten chief executive officers interviewed by AGA now believe the situation will continue to improve over the course of the next months, even though some COVID-19 breaks have been reported. AGA CEO Bill Miller remains optimistic as well for 2022.

However, new challenges have emerged, not necessarily related to the pandemic. There have been issues such as supply chain (75% of CEOs said that this could be a problem), and then 54% remarked that labor shortages are another severe problem. Meanwhile, 67% of the interviewed chief executives spoke about inflationary and interest rate problems that may emerge as the world is changing rapidly.

Miller summarized these qualms and said that they were not unique to the casino industry alone as businesses across the United States were facing this new economic reality and trying to adjust to it to bolster growth and sustainability. However, AGA and stakeholders have own shown resilience in building back the industry.

Labor shortages have been a considerable problem in the casino industry. Following mass layoffs and furloughs throughout 2020 and part of 2021, casino workers have become aware that they may be better off looking for employment elsewhere. Health concerns have also been an issue, including smoking on the workplace, which was temporarily banned in most casinos at the peak of the pandemic.

Image credit: Unsplash.com

22 Apr 2022
3 min. read