In the latest Gaming Industry Outlook, recently released in partnership with Fitch Ratings, 67% of gambling company CEOs reported their current business situation as “good”; this is up from 54% just six months ago. None of those surveyed rated their situation as “poor.”
In a wide-ranging report, the snapshot covered factors such as revenue growth, areas for concern and most likely investment opportunities across the remainder of 2022.
From an economic standpoint, the industry was seen to have slowed since the heights of Q4 2021, when gambling operators posted record revenue growth in the aftermath of Covid-19. Still, the Current Conditions Index of 93.5 reflects an annualised growth rate of 16.5% over the past three quarters.
This is backed up by anecdotal feedback from survey respondents, with 40% of CEOs expecting the industry’s climate to improve over the next six months, with just 13% predicting worse conditions.
In terms of areas for concern, business leaders also commented on the top factors that could impede economic growth over the next two quarters.
Supply chain issues took the number one spot, with over three-quarters of CEOs suggesting this could be a factor. Also, 67% of respondents felt inflationary and interest-related aspects could hamper their growth, while 54% believed labour shortages would have a part to play.
AGA President and CEO Bill Miller commented: “Gaming executives are signalling confidence in our continued recovery that is in line with record-setting consumer demand for gaming. I’m optimistic that 2022 will see the return of a true sense of normalcy for gaming.
“Like businesses across the country, our industry is grappling with supply chain, labour and inflation challenges that, if left uncontrolled, could dampen our continued growth and economic outlook.”
The survey was conducted by Oxford Economics, taking place between 21 March and 1 April 2022 and included 24 recipients.
