American Gaming Association
Gaming CEOs Positive on Current Business Conditions, Neutral on Future Outlook
Gaming executives remain upbeat about current business conditions with a neutral outlook on future conditions, according to the American Gaming Association’s (AGA) Gaming Industry Outlook presented in partnership with Fitch Ratings.
The overwhelming majority of gaming executives surveyed view the current business situation as good (42%) or satisfactory (55%), moderating from Q1 when 62% reported good conditions and 35% described them as satisfactory. When asked about future business conditions, more than half expect the next three to six months to be about the same (58%), with the remainder almost evenly split between those who anticipate better or worse conditions (3% net positive).
“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. Gaming CEOs remain focused on delivering world class entertainment options against the backdrop of broader economic uncertainty,” said AGA President and CEO Bill Miller.
Current Conditions Index
The Current Conditions Index measured 100.6, reflecting slight growth of 0.6% in casino gaming-related economic activity in Q3 2023 relative Q2 2023. Because gaming revenue and employee wages are adjusted for inflation, the Current Conditions Index was tempered by persistent high inflation through Q3 2023.
Future Conditions Index
The Future Conditions Index stands at 99.6, indicating annualized industry economic activity over the next six months is expected to decrease slightly. This outlook reflects Oxford Economics’ forecast that the U.S. economy will experience a mild recession beginning in Q4 2023. However, even with an anticipated slow down in consumer spending, consumer survey results continue to indicate that more than one-third of adults expect to visit a casino during the next 12 months, consistent with prior quarter results.
Gaming Executive Panel
Executive views on future financial conditions are mixed. On balance, respondents expect that their overall balance sheet health will improve (26% net positive) over the next three to six months and that their pace of capital spending will increase (24% net positive). However, on net, they expect the pace of revenue growth to decrease (13% net negative responses) and describe access to credit as somewhat restrictive.
At the sector level, gaming supplier CEOs broadly expect the pace of unit sales to increase through the end of the year while many operator CEOs plan to increase capital investments in their food and beverage offerings.
- Casino operators expect gaming units in operation to increase (11% net positive), while 67% expect greater than normal investments in food and beverage and 33% expect greater than normal capital spending on gaming machines.
- Gaming equipment manufacturers expect units for new or expansion use to increase (44% net positive), with an equal share expecting sales of gaming units for replacement use to increase.
When asked about top business challenges, 58% of executives cited inflation or interest rate concerns as factors limiting operations, followed by overall uncertainty of the economic environment (55%).
American Gaming Association
AGA Unveils Have A Game Plan Initiative’s Fifth Pillar: “Keep Your Cool”
The American Gaming Association (AGA) announced the expansion of its “Have A Game Plan. Bet Responsibly.” public service campaign with the introduction of a fifth pillar: “Keep Your Cool”. This new pillar reinforces the campaign’s mission to promote responsible sports wagering by emphasizing athlete harassment is never appropriate.
The announcement comes as data highlights the growing effectiveness of responsible gaming programs across the country. According to recent research, 66% of Americans believe the gaming industry’s responsible gaming initiatives are effective, up from 59% in 2023. Among those who actively participate in gaming, 79% of physical casino players and 85% of sports bettors agree these programs are working, including an impressive 73% of young bettors aged 18-24.
“Responsible gaming efforts like Have A Game Plan and other proactive efforts by legal operators are resonating with consumers and making a difference. ‘Keep Your Cool’ builds on this momentum by reminding bettors that a betting result – good or bad – is not an invitation to criticize a team, official, or athlete,” said Bill Miller, President and CEO of the AGA.
Since its launch in 2019, “Have A Game Plan. Bet Responsibly.” has educated bettors through four foundational pillars:
• Set a Budget: Establish and stick to a financial limit.
• Keep It Social: Bet responsibly as part of a shared activity.
• Know the Odds: Know the terminology and understand risks before placing bets.
• Play Legally: Use regulated, legal betting platforms.
The new “Keep Your Cool” pillar complements these principles by promoting sportsmanship and emphasizing the social aspects of sports betting:
Respect the Game: Winning and losing are part of sports betting, nobody is perfect; the result of a bet should not prompt negative actions – in person or online – toward athletes and officials.
Stay Focused on Having Fun: Sports betting is entertainment.
NASCAR, an early supporter of Have A Game Plan, underscored the importance of the new pillar. “At NASCAR, we believe responsible gaming enhances the overall fan experience. ‘Keep Your Cool’ reflects our shared commitment to encouraging fans to bet responsibly and maintain a respectful approach to the sport they love,” said Steve Phelps, President of NASCAR.
With responsible gaming messaging resonating stronger than ever, Have A Game Plan. Bet Responsibly. continues to foster a more enjoyable betting environment for fans.
AGA
Commercial Gaming Revenue Growth Continues in Q3 2024, Driving Industry’s 15th Consecutive Quarter of Growth
U.S. commercial gaming revenue reached $17.71 billion in Q3 2024, the industry’s highest-grossing Q3 on record, according to the American Gaming Association’s (AGA) Commercial Gaming Revenue Tracker. This makes Q3 2024 the industry’s 15th consecutive quarter of annual revenue growth, with September marking the 43rd straight month of rising year-over-year commercial gaming revenue.
Through the first nine months of the year, nationwide commercial gaming revenue stands at $53.24 billion, pacing 8.0 percent ahead of 2023 and putting the industry on track for a fourth straight record revenue year.
In Q3 2024, 29 of the 35 commercial gaming jurisdictions operational last year saw increased year-over-year revenue. This growth resulted in an 8.9 percent year-over-year increase in state and local taxes tied directly to gaming revenue, with commercial gaming operators contributing $3.79 billion in taxes across the quarter.
Quarterly revenue from land-based gaming – encompassing casino slots, table games and retail sports betting – totaled $12.56 billion, 0.62 percent lower than Q3 2023. Meanwhile, combined revenue from online sports betting and iGaming totaled $5.14 billion in Q3 2024 as online gaming made up 29.0 percent of commercial gaming revenue, a significantly higher share than in Q3 2023.
Looking at each sector in Q3 2024:
- Traditional Gaming: Traditional brick-and-mortar casino gaming generated quarterly revenue of $12.38 billion, a contraction of 0.9 percent year-over-year.
- Legal Sports Betting: Americans legally wagered $30.3 billion on sports, generating $3.24 billion in quarterly revenue (+42.4% YoY). Recent market launches in Kentucky, Maine, North Carolina and Vermont contributed to this growth.
- iGaming: iGaming generated $2.08 billion in revenue, marking a 30.3 percent year-over-year increase.
“Q3 2024 continued gaming’s momentum from the first half of the year, with online casino and sports betting driving strong growth. At the same time, new brick-and-mortar casino openings bolstered traditional gaming, which still accounts for the bulk of industry revenue,” said AGA Vice President of Research David Forman. “More than a quarter of commercial revenue now regularly comes from online sources, raising the importance of continued sustainable growth with consumers in those states.”
American Gaming Association
AGA, ECA and BGC Sign MOU
The American Gaming Association (AGA), European Casino Association (ECA), and the Betting & Gaming Council (BGC) announced the signing of a memorandum of understanding (MOU) that marks the beginning of a collaboration grounded in shared industry values and priorities. The MOU formalizes a commitment among the three associations to address key issues facing the global gaming industry including illegal gambling, responsible gaming, innovation, and security.
“This new partnership is a significant step forward in our collective efforts to advance the legal gaming industry and protect consumers around the globe. By sharing our unique resources, we will expand our fight against illegal gambling to new fronts, work together to strengthen responsible gaming, and innovate around business best practices,” said AGA President and CEO Bill Miller.
“By fostering dialogue and cooperation across borders, the AGA, ECA, and BGC are taking a proactive approach to safeguarding the integrity of the legal gaming industry and ensuring its continued growth and success,” Miller added.
The MOU will create a platform for undertaking joint research projects and bringing each organization’s staff and members together to share expertise.
“The European Casino Association stands united with the AGA and BGC in its commitment to addressing the key issues facing all gaming industry stakeholders. The ECA fully backs this initiative and supports the ongoing efforts to rigorously combat illegality within our industry, continuously strengthen player protections and security, and ensure the creation of an environment that fosters innovation and growth within the gaming community. On behalf of the ECA, I look forward to participating in the forthcoming law enforcement roundtable and to sharing the benefits of these learnings with our members,” said Erwin van Lambaart, Chairman of the European Casino Association.
Betting and Gaming Council CEO Grainne Hurst said: “This partnership marks a new chapter in our shared vision to build a world-class, trusted and sustainable betting and gaming industry. BGC members are rightly proud of their reputation as global leaders, and they know the power of collaboration. Working together with the AGA and ECA, I am confident our shared knowledge and expertise will be vital to bolstering safer gambling standards while tackling the threat of the growing and unsafe unregulated gambling black market in the UK.”
The first initiative under this MOU will be a law enforcement roundtable focused on combating illegal gambling. Scheduled for January 2025, this roundtable will bring together industry leaders, law enforcement officials, and regulators to discuss the impact of illegal gambling on legal operators, consumer safety, and the global financial system. The session will also explore strategies for enhancing cross-jurisdictional communication and developing actionable solutions to address these challenges.
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