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Gaming Industry Remains Strong as Economic Activity Slows Down

by Global Payments Gaming Team / October 27, 2022

After a period of exceptionally strong growth, economic activity in the U.S. gaming industry is expected to ease moderately over the next six months. For the gaming industry experts to thoroughly prepare themselves for future market conditions, the American Gaming Association (AGA) has published the Fall 2022 Gaming Industry Outlook presented by Fitch Ratings. It is the mission of the AGA to achieve sound policies and regulations consistent with casino gaming’s modern appeal and vast economic contributions.

The Gaming Industry Outlook provides a snapshot of the current and future economic health of the industry based on executive sentiment, casino visitation plans, gaming revenue and economic indicators. The Outlook includes two separate indices: the Current Conditions Index and the Future Conditions Index.

The Current Conditions Index reflects approximately stable casino gaming-related economic activity in the third quarter relative to the second quarter, while the Future Conditions Index indicates an expected moderate decrease in annualized industry economic activity over the next six months. The weaker outlook evident in the Future Conditions Index reflects a baseline economic outlook that now assumes a mild recession during the first half of next year balanced by positive expectations expressed by the Gaming Executive Panel. Nearly four in ten-panel participants (38%) expect business conditions to be better over the next three to six months, compared to only eight percent who expect worse conditions.

Gaming executives also expressed largely positive or neutral sentiments across a range of indicators. Overall, almost all respondents describe the current business situation as good (68%) or satisfactory (28%), and more than one-third expect future conditions to improve (38%) over the next three to six months. Panel participants who anticipate an increased pace of growth in wages and benefits continue to outnumber those that expect a decrease by a wide margin (72% net positive). Meanwhile, supply chain issues remain a top concern even as they have started to ease. Two-thirds (65%) of panel participants cited supply chain delays as a limiting factor in the third quarter, down from 75% earlier this year.

The AGA’s Gaming Industry Outlook gives the gaming industry leaders and supporters a look into how the health of the economy plays a role in the projection of gaming. Global Payments Gaming Solutions offers simple, easy-to-use and convenient payment systems to gaming establishments. By utilizing digital technology, Global Payments’ solutions like VIP Mobility™ and VIP Preferred® provide a cutting-edge payments experience for local and online casinos across the nation. Global Payments enables gaming professionals a satisfying payment experience regardless of industry expectations.

Click here to learn how Global Payments can help your casino take advantage of the gaming industry’s growth.

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