The news may be peppered with stories about a spending slowdown and continued inflation when it comes to the economy, but gambling industry CEOs remain optimistic about performance in the coming quarters.
The American Gaming Association (AGA) released its Fall 2023 Gaming Industry Outlook this week. The bi-annual report surveyed 33 CEOs within the industry about how they think the vertical is performing and what the outlook for the future is.
A full 97% of those surveyed said the market is currently satisfactory (55%) or good (42%). Accordingly, the AGA’s Current Conditions Index measured at 100.6, which is indicative of slight industry growth.
After dropping tremendously at the start of the pandemic, the Current Conditions Index catapulted to a record high in 2021. Since then, the number has been trending back towards the mean, with this most recent number just slightly above pre-pandemic levels.
Looking ahead, the CEOs expect the next quarter to decline slightly but remain relatively flight, as the projected CCI number is 99.6.
Experts predict the US economy will avoid a recession this year but that the general economic environment will remain relatively cool. Nonetheless, the report shows that one-third of US adults plan to visit a casino in the next year.
CEOs still cited inflation, interest rates, and economic uncertainty as the biggest issues they are concerned about in the immediate future
“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,” said AGA President and CEO Bill Miller. “Gaming CEOs remain focused on delivering world class entertainment options against the backdrop of broader economic uncertainty.”