Research & Resources

Join us for a webinar exploring two timely topics: how gaming advertising evolved in 2024 and the release of the AGA’s new responsible gaming messaging framework. We’ll break down key shifts in industry ad spend and volume trends using Nielsen Ad Intel data and share the key findings and research driving our new responsible gaming messaging framework.

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March 16, 2018 

BMM Testlabs has entered into a strategic alliance with the American Gaming Association (AGA).

Under the multi-year agreement, BMM will share its expertise on gaming and regulatory issues with the AGA and its various members.

BMM and the AGA will work together on a co-piloted effort to drive regulatory reform, as well as collaborate on joint research, whitepapers and educational forums.

The gaming testing laboratory and technical consultancy will also take part in AGA committees and events, as well as join the AGA board of directors and its Public Policy Committee.

“BMM is a trusted partner in an industry that is in constant motion and a tremendous resource for the AGA as we gain traction on issues like sports betting and the next generation gaming policy,” AGA president and chief executive Geoff Freeman said.

Martin Storm, president and chief executive of BMM, added: “BMM is very pleased to partner with the AGA to help prioritise and drive an efficient regulatory reform process.

“It’s a significant reflection on our 36 years of dedication to integrity, innovation and quality within the global gaming industry and we look forward to developing relationships with and meeting the needs of the AGA and its members.”

WASHINGTON – American Gaming Association (AGA) President and CEO Bill Miller released the following statement on bipartisan legislation introduced Thursday by Reps. Dina Titus (D-Nev.) and Guy Reschenthaler (R-Pa.):

“While the federal excise tax’s original purpose was to punish illegal operators, this antiquated tax now aids the offshore, illegal market and disadvantages safe, legal and regulated sportsbooks nationwide. If Congress wants to position the legal sports betting market for success, it needs to eradicate this unnecessarily burdensome tax to level the playing field for legal sportsbooks.

“I’m grateful to Congressional Gaming Caucus Co-Chairs Reps. Titus and Reschenthaler for introducing this much-needed legislation that will continue fostering growth for the legal market and better protect customers.”

The AGA will host a major law enforcement summit in its Washington, D.C. office to examine sports betting and further strengthen the partnership between the gaming industry and the law enforcement community. For more information, contact Brian Cohen, director of strategic alliances. 

In the face of slowing revenue expansion, gaming industry leaders continue to hold an overall positive view of the current business situation, with a notable improvement in credit conditions, according to the latest American Gaming Association (AGA) Gaming Industry Outlook. 

The majority of respondents (88%) view the current state of the gaming industry as either good or satisfactory. Meanwhile, executives have a more conservative outlook on future business conditions, with respondents split on whether they expect conditions to improve over the next three-to-six months (3% net positive) and many expecting a decrease in customer activity (28% net negative). 

“After years of very strong consumer gaming spending growth, expectations around customer activity over the next three to six months have cooled considerably,” said AGA Vice President of Research David Forman. “Still, gaming businesses remain well positioned, with executives touting strong balance sheets and more viewing access to credit as easy than restrictive for the first time in two years.” 

Gaming Executive Panel 
Since Q1, gaming executives’ sentiment has shifted, with a greater number of respondents now expecting a decline in customer activity over the next three to six months (28% net negative, up from 4% net negative in Q1). Despite this, panelists foresee improvements in overall balance sheet health (34% net positive). 

Additionally, more executives reported access to credit as easy (19%) rather than restrictive (3%) for the first time in two years, and fewer cite interest rates as a major limiting factor than in the spring. 

• Hotel (56%) and food and beverage facilities (56%) continue to be the main and growing focus of capital investment among operators, followed by live entertainment (28%) and casino floor slots (22%).
• Meanwhile, gaming equipment suppliers now believe their pace of capital investment and game sales will decelerate (13% net negative). 

These expectations are impacted by evolving macroeconomic challenges, with uncertainty of the economic environment vaulting to the top of executive concerns (56%, up from 34% in Q1), followed by state regulatory concerns (31%), and inflationary or interest rate concerns and geopolitical risk (both 34%). 

The Current Conditions Index
The Current Conditions Index for Q3 2024 was 97.3, which is consistent with real annualized contraction of 2.7 percent. The Current Conditions Index measures real economic activity in the industry, as measured by gaming revenue, employment and employee wages and salaries. 

The Future Conditions Index 
The Future Conditions Index, a leading indicator of changes in industry conditions, measured 98.9 in Q3. This indicates an environment in which real economic activity in the gaming sector, after controlling for underlying inflation, is expected to moderately decrease over the next six months (1.1% annualized rate). 

About the Outlook
The AGA Gaming Industry Outlook is prepared biannually by Oxford Economics. It provides a timely measure of recent industry growth and future expectations. The Q3 2024 survey was conducted between August 21 and September 6, 2024. A total of 32 executives responded, including executives at the major international and domestic gaming companies, tribal gaming operators, single unit casino operators, major gaming equipment suppliers, and major iGaming and/or sports betting operators.  

Gaming Industry Outlook: Gaming Growth Slows Following Period of Brisk Expansion

U.S. gaming industry expansion slowed in recent quarters and the near-term outlook is more tempered than in prior years, according to the AGA Gaming Industry Outlook.

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 for Q3 2024 was 97.3, which is consistent with real annualized contraction of 2.7 percent. The Current Conditions Index measures real economic activity in the industry, as measured by gaming revenue, employment and employee wages and salaries.
• The Future Conditions Index, a leading indicator of changes in industry conditions, measured 98.9 in Q3. This indicates an environment in which real economic activity in the gaming sector, after controlling for underlying inflation, is expected to moderately decrease over the next six months (1.1% annualized rate).

The Future Conditions Index reflects gaming CEO growth expectations that have softened relative to six months ago – with the share of executives expecting decelerating growth outweighing those expecting accelerating growth – and an economy that has shown solid growth recently, but which is expected to slow moderately in coming quarters.

Index Highlights

The Current Conditions Index indicates that real economic activity in the industry, as measured by gaming revenue, employment and employee wages and salaries, expanded briskly during Q4 2023 and Q1 2024, but there are initial indications activity decelerated during the most recent two quarters. The Current Conditions Index for Q3 2024 was 97.3, which is consistent with real annualized contraction of 2.7 percent, following a reading of 99.0 in Q2 2024 (consistent with 1.0 percent annualized contraction). Because gaming revenues and employee wages are adjusted for inflation, the Current Conditions index was tempered by still-elevated inflation through Q2 2024, though inflation was less of a factor in slowing growth in Q3 2024.

The smoothed version of the Current Conditions Index, which is reported with a two-quarter lag and is less impacted by short-term fluctuations, stood at 109.0 in Q1 2024 (three-quarter weighted average). This indicates that industry activity has been expanding in recent quarters at an annualized pace of 9.0 percent, representing sustained real growth even when controlling for the effects of inflation.

Gaming CEO growth expectations have softened relative to six months ago, according to the Gaming Executive Panel, a major input in the Future Conditions Index. In aggregate, across a set of outlook questions, the share of more conservative responses on measures such as future business conditions outweighed more positive responses by 8.7 percentage points this quarter (8.7% net negative), compared to 6.3% net positive in Q1 2024. For example, in this quarter’s survey, slightly more gaming executives anticipate the pace of revenue growth to decelerate rather than accelerate over the next three to six months (16% net negative).

The Future Conditions Index also reflects Oxford Economics’ current forecast that the U.S. economic growth will slow in coming quarters relative to recent growth but avoid recession. It appears fears of labor market weakness are overdone, and consumer spending growth is expected to remain positive, accompanied by further gains in household net worth, and only a slight increase in the unemployment rate. The Federal Reserve recently made the first of what is anticipated to be a series of cuts in short-term interest rates, moderating one factor that is contributing to slower economic growth. Oxford Economics expects inflation, as measured by the PCE price index, will slow from 2.4% year-over-year in Q4 2024, to 2.2% by Q4 2025. The share of consumers that expect to visit a casino over the next 12 months remains solid, having improved relative to a year ago.

The Future Conditions Index provides a leading indicator of changes in industry conditions. The 98.9 reading on the Future Conditions Index in the third quarter indicates an environment in which real economic activity in the gaming sector, after controlling for underlying inflation, is expected to moderately decrease over the next six months (1.1% annualized rate).

Gaming Executive Panel Highlights

A majority of gaming executives now cite uncertainty around the economic environment as a key factor limiting operations (56%). Also, there has been a notable shift since Q1, with a greater share of respondents now expecting a decrease in customer activity over the next three to six months (28% net negative, compared to 4% net negative in Q1), with respondents expecting slowing growth across each customer category.

More executives now expect a decrease in the pace of hiring (56% net negative), revenue growth (16% net negative), and capital investment (15% net negative), than expect an increase. Though panelists generally still see overall balance sheet health improving (34% net positive).

More executives (16%) are reporting a negative outlook of the business situation than in Q1 (10%), while fewer respondents characterize the current business situation as good or satisfactory (88% in Q3 compared to 94% in Q1).

Inflationary or interest rate concerns continue to be cited by some as a key factor limiting operations (28%). However, nearly all gaming executives report that financial conditions are accommodative, with more viewing access to credit as easy (19%) than restrictive (3%) for the first time in two years.

Gaming equipment suppliers now believe the pace of capital investment will decrease (13% net negative) and are cautious about the sale of gaming units for replacement use (13% net negative) and new or expansion use (13% net negative).

Hotel (56%) and food and beverage facility (also 56%) investments continue to be the main and growing focus among respondents, followed by live entertainment (28%), which increased relative to the Q1 survey (16%).

Methodology

The Gaming Industry Outlook Index is prepared on the behalf of the American Gaming Association by Oxford Economics. It provides a timely measure of recent growth and future expectations. This is the seventh release of the index.

Current Conditions Index:

• The Current Conditions Index measures activity in the U.S. casino gaming industry during the most recent quarter. It is based on three components: gaming revenue, employment and wages and salaries. Each component is adjusted to control for seasonal patterns and monetary measures are adjusted for inflation. Data is estimated through the most recent quarter for each index component based on available monthly data as of the point of index calculation. The index is re-estimated as additional information becomes available for past quarters.
• The Current Conditions Index reflect the composite growth of the three components, on an annualized basis. Index values above 100 indicate activity expanded during the quarter, while index values below 100 indicate a contraction. Index values are scaled to be consistent with annualized growth. For example, an index values of 103 is consistent with a three percent annualized pace of growth. The index controls for typical seasonal patterns, and index values may be directly compared to the pace of change in previous periods.
• When shown graphically, the Current Conditions Index compresses the most extreme values (index values below 80 or above 120). Individual observations are shown as well as a smoothed series, similar to a moving average, to help convey shifts in industry conditions.

Future Conditions Index:

• The Future Conditions Index measures the expected direction of conditions in the U.S. casino gaming industry over the coming six months. It is based on the following three components: economic conditions (measured as Oxford Economics’ forecast for growth in personal disposable income, household net worth and consumer spending on services), consumer intentions to visit a casino in the future, and the aggregate sentiment expressed in the Gaming Executive Panel. The Future Conditions Index is scaled so that index values correspond to the expected growth rate in industry conditions as measured by the Current Conditions Index. For example, an index values of 103 is consistent with a three percent annualized pace of expected growth.
• The economic conditions measure is based on Oxford Economics’ forecast of growth in real disposable income, household net worth, and consumer spending on services. The components of the index were selected based on the contribution each indicator makes to predicting future movements in the Current Conditions Index. Casino executive sentiment is measured through the aggregate measure of positive responses minus negative responses across a set of survey questions.

• • For example, one of the survey questions included in this aggregate is the pace of hiring new employees. The net positive response for that question is calculated as the share of responses that expect an increase in the pace of hiring new employees over the next three to six months, minus the share that expect a decrease in hiring. This net positive response is averaged with responses to a selected set of other survey questions (e.g., pace of revenue growth, pace of growth in wages and benefits, expectations of future business conditions) to calculate the average net positive response as a measure of casino executive sentiment.

• The Future Conditions Index is based in part on Oxford Economics’ outlook for the economy:
  • S. economic growth will slow in coming quarters relative to recent growth but avoid recession. It appears fears of labor market weakness are overdone. The unemployment rate is rising because recent hiring is not strong enough to fully absorb new labor force entrants. This type of rebalancing in the labor market is not significantly undercutting household spending trends. Also, while the personal saving rate remains low, it’s justified by near-record levels of household wealth relative to incomes. While the presidential election introduces a source of uncertainty, it typically takes time before policies of a new president can shape the economy, and the likely outcome with divided government further limits policy shifts. The Federal Reserve recently made the first of what is anticipated to be a series of cuts in short-term interest rates, moderating one factor that is contributing to slower economic growth.
  • Each of the economic drivers in the Future Conditions Index (disposable income growth, household net worth and consumer spending) are expected to show positive growth in real terms, though growth the remainder of the year and into 2025 is expected to be weaker.

Gaming Executive Panel

• The Gaming Executive Panel consists of senior-level AGA member executives selected to represent the breadth of the casino gaming sector. Respondents were segmented across three primary categories: casinos operators and owners, gaming equipment suppliers and iGaming and/or sportsbook operators.
• The Q3 2024 survey was conducted between August 21 and September 6, 2024. A total of 32 executives responded, including executives at the major international and domestic gaming companies, tribal gaming operators, single unit casino operators, major gaming equipment suppliers, and major iGaming and/or sports betting operators.

Set yourself up for success at Global Gaming Expo (G2E)—the largest gathering of global, commercial and tribal gaming professionals in North America. Take advantage of new educational content that is fast-paced and actionable and experience first-hand the new products and innovative technologies showcased on the expo floor. G2E has everything you need for your casino floor and across your entire operation—from traditional casino fare to sports betting, non-gaming amenities and digital products—G2E is where your business growth is accelerated.

The gaming industry is focused on ensuring our responsible gaming (RG) commitment grows in unison with the expansion of legal sports betting and interactive gaming. This requires gaming operators and suppliers to adapt brick and mortar RG programs to new audiences and formats, create innovative products to address evolving needs, and think differently about responsible gaming.

Join us for an AGA webinar on October 6 at 2:30 PM EDT/11:30 AM PDT for a discussion on:

• How responsible gaming is evolving with new gaming formats
• Addressing the responsible gaming continuum–from consumer education to self-exclusion
• Extending responsible gaming to marketing and advertising

Register Now

Mark your calendar for the 6th annual Regulator Roundtable presented by the American Gaming Association (AGA) taking place on Thursday, October 8 from 10:00 AM to 1:30 PM PDT / 1:00 PM to 4:30 PM EDT. Due to the cancellation of Global Gaming Expo 2020, this year’s Regulatory Roundtable will be held in a virtual format.

The Roundtable offers a great opportunity for regulators and other stakeholders to hear from colleagues about the latest regulatory developments and challenges in various states. The program for this year is anticipated to include a fireside chat with a prominent industry pioneer, insight from the regulatory community on how the COVID-19 pandemic has disrupted the gaming industry, and discussion around responsible gaming and sports betting