The American Gaming Association’s report unveils a nuanced outlook for Q1 2024, indicating a slower yet sustainable growth trajectory in the US gambling industry. Discover key economic indicators, industry sentiments, and projections for the future.
The American Gaming Affiliation (AGA) outlined slowed however “extra sustainable” teach within the US playing industry for Q1.
The AGA Gaming Alternate Outlook acknowledged the New Prerequisites Index for Q1 2024 modified into as soon as 102.8. The AGA acknowledged this modified into as soon as per true annualised teach of 2.8%. The New Prerequisites Index analysed economic exercise within the US casino gaming industry, akin to gaming revenue and employee wages.
The AGA’s Future Prerequisites Index also measured 102.2 in Q1, with economic exercise in US gaming predicted to enlarge by an annualised price of 2.2% over the next six months. The Future Prerequisites Index measures the expected route of conditions of the US casino gaming industry, analysing the economic surroundings, particular person intentions and the combination sentiment of the AGA’s gaming govt panel, which incorporates senior-stage AGA individuals chosen to characterize the industry.
The AGA received 32 peruse responses from executives at US gaming companies for its Gaming Alternate Outlook. The executives’ new views on new conditions were moderated, even even though the long term outlook modified into as soon as a marginal enchancment. The Future Prerequisites Index also accounted for a extra resilient economy than first expected, even even though that is expected to slack over the comfort of 2024.
Growth slower compared to old years
The AGA’s New Prerequisites Index stumbled on that true economic exercise modified into as soon as slower in 2023 than in 2021 and 2022.
On the opposite hand, the index remained obvious at 102.8, indicating “solid industry teach” despite excessive inflation that considerably tempered its findings. This follows a reading of 108.8 in Q4 2023, which is per an 8.8% price of annualised teach.
Gaming CEOs’ teach expectations were round the identical as six months ago. Determined responses outweighed negative responses by 6.3%, down from 6.4% in Q3 2023.
The following three to six months are predicted to be an enchancment according to 32% of executives. Meanwhile, 58% anticipate gaming exercise to stay round the identical. The discovering of 9 in 10 expecting the sector to make stronger or pause the identical may well well be up from the eight in 10 reported in autumn. In total, 44% characterised the continuing difficulty to be perfect, while 50% acknowledged it modified into as soon as ample.
Additionally, 42% of executives were extra obvious that total steadiness sheet well being will make stronger. On the opposite hand, 13% expected revenue teach to stagnate, while 22% predicted new hiring will slack.
AGA expects teach to slack extra with “restrictive” financial conditions
As per new expectations of the US economy teach slowing over 2024, the AGA also predicts that increased hobby rates will continue to preserve aid the gaming industry.
On the opposite hand, the AGA expects the solid labour market to rob disposable profits. Subsequently, the AGA predicts a extra obvious outlook than reported six months ago.
On outlook, 19% of executives characterised entry to credit rating as tight, down from 26% within the old CEO peruse. Perfect over a quarter – 28% – also reported concerns over hobby rates limiting operations as a limiting part, while 34% pointed to geo-political risks. Additionally, 34% pointed to uncertainty over the economic surroundings as a limiting part.
In concluding, the AGA acknowledged its Future Prerequisites Index reading of 102.2, when taking into account underlying inflation, reflects increasing economic exercise within the gaming sector.
Source: iGamingBusiness
