Zona de Azar USA – AGA Releases Positive Industry Outlook Despite Economic Uncertainty
USA.- April 26th 2023 www.zonadeazar.com Yesterday, the American Gaming Association (AGA) released its biannual Gaming Industry Outlook, showing a majority of gaming executives report a positive view of current business conditions, while economic uncertainty is tempering future industry growth expectations:
Nearly every gaming executive surveyed characterizes the current business situation as good (62%) or satisfactory (35%).
However, panel participants report a more cautious outlook moving forward, with only 20 percent expecting future conditions to be better than today and two-thirds (64%) expecting future conditions to be the same.
Dive deeper: Cautions around future industry conditions are driven by the current Oxford Economics forecast, which predicts the U.S. economy will experience mild recession in the second half of 2023. Additionally, gaming executives are leaning toward expectations that the pace of new employee hiring, revenue growth and customer activity will decrease moderately over the next three to six months.
However, plans for investment among executives remain positive, reflecting continued long term optimism for industry growth.
Break it down: Operators and suppliers both express outsized optimism across certain segments of their businesses:
More operators expect capital investment (21% net positive) and gaming units in operation (14% net positive) to increase over the next three to six months than decrease.
Gaming equipment manufacturers are particularly positive, with almost all supplier executives expecting sales of gaming units for replacement use to increase (88% net positive) and most expecting units for new or expansion use to increase (63% net positive).
What AGA is saying:
Edited by: @MaiaDigital www.zonadeazar.com
