AGA Smartbrief Survey Results Reveal Diverse Perspectives on the Future of the Gaming Industry
Industry Professionals Optimistic About Improved Conditions, Predict Gradual Recovery
Brian Lehman
(202) 552-2680
LAS VEGAS – After weathering challenging economic conditions for almost two years, nearly half (47 percent) of gaming professionals think that the state of the industry finally is beginning to improve, according to survey results released today by the American Gaming Association (AGA). Data was collected during a two-week survey of 260 subscribers of AGA SmartBrief, a daily electronic gaming industry news aggregator.
“Without a doubt, the gaming industry faces a long road to recovery,” said Frank J. Fahrenkopf, Jr., president and CEO of the AGA. “However, I consider these results a sign that there is optimism within our industry that we are turning a corner.”
Despite the optimism expressed by many, still nearly one-third of survey respondents (31 percent) said conditions within the industry remain depressed and are neither improving nor worsening. Twenty percent of respondents think the industry continues to decline.
When asked to predict when the gaming industry will fully recover, a plurality of respondents – 44 percent – thinks the industry will reach pre-recessionary levels in approximately three to four years. Twenty-three percent think the industry will completely recover in only one to two years, while 21 percent say five to nine years is most realistic. Five percent of gaming professionals don’t think the industry ever will achieve the level of success witnessed before the recession.
Survey respondents also weighed in on whether the collapse of the economy and the national credit crunch have permanently changed the landscape of the gaming industry. More than two-thirds of respondents (76 percent) think the industry has been irreversibly altered, while 22 percent say that recent changes are not lasting.
Respondents’ opinions were divided when asked about the privatization trend within the gaming industry. Just more than a third of respondents (35 percent) said the prominence of privately held companies will increase in the coming years, while 19 percent said the prominence of publicly held companies will increase. Thirty-three percent of respondents believe the mix will remain the same.
Finally, looking ahead to the coming year, more than a third of respondents (39 percent) say that the legalization and regulation of Internet gambling will continue to dominate national headlines and will be the biggest gaming story of 2010. Another 28 percent predict that the biggest news story of next year will be the recovery of the U.S. gaming industry. Twelve percent think the opening of Singapore’s first two casinos will receive the most press coverage, while 5 percent think Macau’s recovery and expansion will be the biggest story.
AGA SmartBrief is a daily e-newsletter sponsored by the AGA and Reed Exhibitions designed to keep gaming industry professionals better connected and informed. Using proprietary technology, AGA SmartBrief editors distill and disseminate the most pressing industry news stories, free of charge, to more than 6,500 subscribers each day.
AGA SmartBrief survey results were announced during Global Gaming Expo (G2E) 2009. G2E is the leading trade show and conference event for the international gaming entertainment community, attended by more than 25,000 industry professionals from around the world. For more information on G2E 2009, visit www.globalgamingexpo.com.
To subscribe to AGA SmartBrief, please visit www.americangaming.org.
2009 AGA SmartBrief Survey Results
The data featured below was collected during a two-week survey of 260 AGA SmartBrief subscribers in October 2009. Percentages may not add up exactly to 100 due to rounding. For more information about the survey, or to subscribe to AGA SmartBrief, please visit www.americangaming.org.
Which of the following, in your personal opinion, best describes the current state of the worldwide gaming industry?
|
Number of Respondents |
Percentage |
|
| Business conditions are getting much better |
9 |
3% |
| Business conditions are getting somewhat better |
113 |
44% |
| Business conditions are getting somewhat worse |
45 |
17% |
| Business conditions are getting much worse |
8 |
3% |
| Business conditions remain depressed but are getting neither better nor worse |
80 |
31% |
| Don’t know |
3 |
1% |
How long do you think it will be before the health of the worldwide gaming industry returns to levels seen before the economic collapse of 2008?
|
Number of Respondents |
Percentage |
|
| 1 - 2 years |
59 |
23% |
| 3 - 4 years |
114 |
44% |
| 5 - 9 years |
54 |
21% |
| 10 years or more |
10 |
4% |
| Never |
14 |
5% |
| Don’t know |
6 |
2% |
Do you agree or disagree with the following statement: “The collapse of the economy and credit markets in 2008 permanently changed the landscape of the U.S. casino industry.”
|
Number of Respondents |
Percentage |
|
| Very much agree |
94 |
37% |
| Somewhat agree |
101 |
39% |
| Somewhat disagree |
42 |
16% |
| Very much disagree |
16 |
6% |
| Don’t know |
4 |
2% |
In the last several years, the prominence of privately held companies in the gaming industry increased significantly. In the future, do you think compared to today that…
|
Number of Respondents |
Percentage |
|
| The prominence of privately held companies will increase |
88 |
35% |
| The prominence of publicly held companies will increase |
49 |
19% |
| The mix of privately and publicly held companies will remain about the same |
83 |
33% |
| Don’t know |
35 |
14% |
Which of the following do you think is most likely to be the biggest story of 2010 for the worldwide gaming industry?
|
Number of Respondents |
Percentage |
|
| The legalization and regulation of Internet gaming in the U.S. |
100 |
39% |
| The opening of casinos in Singapore |
31 |
12% |
| Macau returns to ambitious build-out and capital expenditures |
14 |
5% |
| The U.S. casino industry shows signs of recovery and expansion |
73 |
28% |
| None of the above |
40 |
16% |
