The first edition of the American Gaming Association’s (AGA) Gaming CEO Outlook has suggested industry leaders are optimistic about the remainder of 2021, but do have concerns about supply and employment issues.
The Gaming CEO Outlook, which was created for the AGA by Oxford Economics, takes into consideration economic indicators such as gaming revenue and casino visitation – as well as CEO responses – to make projections about the future of the industry.
It stated that 48% of its Gaming Executive Panel, which is made up of AGA operators and supplier CEOs and executives, expected that business conditions were to improve close to the end of 2021.
The panel was made up of 24 individuals who responded to the Q3 2021 survey conducted between August 16 and September 14.
A total of 54.1% of the panel expected continued growth over the next six months, while 9.7% expected a decrease in revenue.
In terms of what could hinder operations, 71% of the panel cited supply issues as a potential problem, while shortage of labor was voted by 63% of the panel.
“AGA’s inaugural Gaming CEO Outlook reflects the strength of our recovery and consumer demand for our world-class entertainment offerings,” said Bill Miller, AGA president and CEO.
“The promising outlook is built on our innovation, but like many industries, supply chain and worker shortages continue to slow our full recovery.”
The AGA also published its Current Conditions Index, which looks at the level of economic activity in the market.
It reported that economic activity in the industry grew by 15.1% in Q3 compared to Q2. This was measured by looking at gaming revenue, employment and employee wages.
The AGA emphasized that although this was a slower growth compared to Q2, it was one of the fastest growths in the 20-year history of the index.
“We are a more resilient industry because of the Covid-19 pandemic,” said Trevor Croker, chief executive of Aristocrat Technologies and chairman of the AGA.
“As the gaming industry looks to 2022 and beyond, our impressive recovery will continue to create jobs, support communities, and generate needed taxes.”