The American Gaming Association (AGA) first Gaming CEO Outlook survey suggests that industry leaders in the gambling space are optimistic the industry will bounce back by the end of the year.
Despite this optimism, there are concerns around supply and employment issues.
The AGA’s survey
The AGA’s new survey, the Gaming CEO Outlook, was created for the AGA by Oxford Economics and aims to make projections for the future of the industry based on economic indicators like gambling revenue, casino visitation, and CEO input.
A panel of 24 AGA operator and supplier CEOs and executives, made up the group surveyed by the AGA. The survey was conducted during Q3 2021 between 16 August and 14 September.
The AGA’s findings
According to the findings, 48% of its Gaming Executive Panel expect business conditions to improve towards the end of 2021.
Meanwhile, a total of 54.1% of the AGA’s panel said they expect to see continued growth over the next six months, while 9.7% of respondents think the industry will see a drop in revenue.
In terms of what could impact operations, 71% of the panel noted supply issues as a potential problem. Respondents also cited a shortage of labor as a potential issue, with 63% of respondents citing concerns over this.
Bill Miller, AGA president and CEO said: “AGA’s inaugural Gaming CEO Outlook reflects the strength of our recovery and consumer demand for our world-class entertainment offerings. The promising outlook is built on our innovation, but like many industries, supply chain and worker shortages continue to slow our full recovery.”
What the industry looks like now
The AGA also published its Current Conditions Index, which looks at the level of economic activity within the US gambling market.
According to the Current Conditions Index, economic activity in the industry grew 15.1% in Q3 compared to Q2. This was measured by looking at employment levels, employee wages, and gaming revenue.
Each component is adjusted to control for seasonal patterns and monetary measures are adjusted for inflation. Data is estimated through the end of Q3 2021 for each index component based on available monthly data as of the point of index calculation
The AGA stresseed that although this was a slower growth level when compared to Q2, it was still one of the fastest growths in the 20-year history of the index.
“We are a more resilient industry because of the COVID-19 pandemic,” said Aristocrat Technologies CEO and AGA Chairman Trevor Croker. “As the gaming industry looks to 2022 and beyond, our impressive recovery will continue to create jobs, support communities, and generate needed taxes.”