AGA – Gaming Industry Outlook, Fall 2023

According to the AGA Gaming Industry Outlook presented by Fitch Rating, the U.S. gaming industry is still growing but at a slower pace than during the pandemic. The Outlook provides an assessment of the industry's current and future economic health based on various factors. Two indices are used to measure the industry's conditions: the Current Conditions Index and the Future Conditions Index. The Current Conditions Index reflects a slight growth in casino gaming-related economic activity in the third quarter compared to the previous quarter. It has a value of 100.6, indicating increasing activity. On the other hand, the Future Conditions Index increased to 99.6, suggesting a slight decrease in industry activity over the next six months. This reflects positive growth expectations from gaming CEOs but also an economic outlook that anticipates a mild recession in the fourth quarter. While current conditions in the gaming industry are viewed positively by many executives, opinions about future business conditions are more balanced. The Current Conditions Index indicates that the real economic activity in the industry remains strong but has slowed down compared to previous years. The index value of 100.6 in the third quarter reflects a 0.6% annualized growth. However, persistent high inflation in the third quarter has tempered this growth. A smoothed version of the Current Conditions Index, which looks at industry activity over a longer period, indicates that the industry has been expanding at an annualized pace of approximately 2.8% in recent quarters when adjusting for inflation. This suggests underlying growth in the industry even when considering inflationary effects.