The American Gaming Association (AGA) was founded in 1994. Their mission is to promote, educate, and lobby on behalf of the gaming industry through education and advocacy. In a recent survey by the AGA, 94% of Gaming CEOs reported they were “happy” with the current business environment. Those numbers align with data the AGA saw from a third-quarter poll in 2023. 

One-third of all Gaming CEOs believe that business conditions will improve over the next six months. AGA President Bill Miller had this to say regarding the growth of the gaming industry.

“Gaming’s record-setting growth over the last three years has set a new standard for industry success,” said AGA President and CEO Bill Miller in a statement. “However, as we enter a period of market normalization, continued investment and innovation in offering world-class, responsible entertainment experiences will be required to maintain industry momentum.”

Is the data provided by the AGA not truly accurate to how Gaming CEOs feel?

Analysts believe that data provided by the AGA from their recent survey could be misplaced. Consumer confidence has dropped for the last three months. On top of that, there is fear that “negative headwinds” could be emerging on the Las Vegas Strip. Specifically, evidence that casinos are reducing spending in this economy. Mostly from casinos in the Midwest and Southwest. 

United States interest rates are the highest they’ve been in two decades and that’s slowly taking its toll on the gaming industry. Inflation rates have elevated persistently and that’s led to a higher cost for operators. Not ideal when many casinos are being built or are making upgrades to become modernized. In the AGAs poll, they noted that Gaming CEOs believe that construction and renovation costs will rise in the next year.

Why is the Gaming Industry growing faster than the US economy?

The AGA believes the US economy will slow down in 2024 but will not hit a recession. Even with projections looking slow, the AGAs survey believes that ⅓ of adults of the legal gambling age will visit a casino in the next year. Data from the AGA suggests that the gaming industry is expanding faster than the US economy. In the first quarter reading of their Current Conditions Index, it was at 108.2. A year-over-year growth of 2.8%. 

That 2.8% growth is well ahead of the 1.6% growth in US GDP in the first three months. Analysts believe that the gap between the two could become even larger. In most states that have it legalized, the gaming and casino industry is thriving. However, they are growing at such a rapid rate that the US economy cannot keep up.