AGA
Gaming CEOs Maintain Positive Business Outlook for 2022
Gaming CEOs are optimistic about the industry’s continued growth and recovery, according to the American Gaming Association’s (AGA) Gaming Industry Outlook presented in partnership with Fitch Ratings.
More survey respondents (67%) rate the current business situation as “good” than six months ago (54%), while none describe it as “poor.” Meanwhile, four in ten CEOs expect the industry’s business climate to improve over the next two quarters compared to 13 percent that expect business conditions to worsen.
“Gaming executives are signaling confidence in our continued recovery that is in line with record-setting consumer demand for gaming,” said AGA President and CEO Bill Miller. “I’m optimistic that 2022 will see the return of a true sense of normalcy for gaming.”
While gaming CEOs are generally positive about the industry’s economic outlook, they also report macroeconomic impediments to business growth. Top concerns include:
- Supply chain issues (75%).
- Inflationary and interest rate concerns (67%).
- Labor shortages (54%).
Notably, COVID-19 and demand for meetings and events are no longer among the top five concerns for gaming CEOs.
“Like businesses across the country, our industry is grappling with supply chain, labor and inflation challenges that, if left uncontrolled, could dampen our continued growth and economic outlook,” added Miller.
The Gaming Industry Outlook includes two separate indices: the Current Conditions Index and the Future Conditions Index.
Current Conditions Index
Despite all-time high commercial gaming revenue through the first two months of 2022, the Current Conditions Index of 93.5 reflects a slowing in casino gaming-related economic activity compared to record industry growth in the fourth quarter of 2021. The index shows that the gaming industry has grown at an annualized pace of approximately 16.5 percent over the last three quarters.
Future Conditions Index
The Future Conditions Index stands at 101.1, reflecting anticipated expansion of casino gaming-related economic activity over the next six months at a modest 1.1 percent annualized rate—a return to normal industry growth after a year of tremendous industry expansion from pandemic-era lows in 2020.
Gaming Executive Panel
The majority of gaming CEOs surveyed (79%) expect the pace of wage and benefit growth to increase over the next three-to-six months, while 50 percent expect the pace of hiring to increase.
Among gaming operators, 53 percent plan to invest more capital than normal in hotel facilities in the coming year, while about one-third plan to invest more than normal in slots on the casino floor (27%) and brick-and-mortar sportsbooks (33%).
Suppliers report increased bullishness for sales growth over the next six months: 100 percent of respondents expect sales of gaming units for new or expansion use to rise; 86 percent expect sales of gaming units for replacement use to rise; and 71 percent expect the pace of their capital investment to rise.
About the Outlook
The AGA Gaming Industry Outlook is presented in partnership with Fitch Ratings and prepared biannually by Oxford Economics. It provides a timely measure of recent industry growth and future expectations. The Q1 2022 survey was conducted between March 21 – April 1, 2022. A total of 24 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.
AGA
Commercial Gaming Revenue Growth Continues in Q3 2024, Driving Industry’s 15th Consecutive Quarter of Growth
U.S. commercial gaming revenue reached $17.71 billion in Q3 2024, the industry’s highest-grossing Q3 on record, according to the American Gaming Association’s (AGA) Commercial Gaming Revenue Tracker. This makes Q3 2024 the industry’s 15th consecutive quarter of annual revenue growth, with September marking the 43rd straight month of rising year-over-year commercial gaming revenue.
Through the first nine months of the year, nationwide commercial gaming revenue stands at $53.24 billion, pacing 8.0 percent ahead of 2023 and putting the industry on track for a fourth straight record revenue year.
In Q3 2024, 29 of the 35 commercial gaming jurisdictions operational last year saw increased year-over-year revenue. This growth resulted in an 8.9 percent year-over-year increase in state and local taxes tied directly to gaming revenue, with commercial gaming operators contributing $3.79 billion in taxes across the quarter.
Quarterly revenue from land-based gaming – encompassing casino slots, table games and retail sports betting – totaled $12.56 billion, 0.62 percent lower than Q3 2023. Meanwhile, combined revenue from online sports betting and iGaming totaled $5.14 billion in Q3 2024 as online gaming made up 29.0 percent of commercial gaming revenue, a significantly higher share than in Q3 2023.
Looking at each sector in Q3 2024:
- Traditional Gaming: Traditional brick-and-mortar casino gaming generated quarterly revenue of $12.38 billion, a contraction of 0.9 percent year-over-year.
- Legal Sports Betting: Americans legally wagered $30.3 billion on sports, generating $3.24 billion in quarterly revenue (+42.4% YoY). Recent market launches in Kentucky, Maine, North Carolina and Vermont contributed to this growth.
- iGaming: iGaming generated $2.08 billion in revenue, marking a 30.3 percent year-over-year increase.
“Q3 2024 continued gaming’s momentum from the first half of the year, with online casino and sports betting driving strong growth. At the same time, new brick-and-mortar casino openings bolstered traditional gaming, which still accounts for the bulk of industry revenue,” said AGA Vice President of Research David Forman. “More than a quarter of commercial revenue now regularly comes from online sources, raising the importance of continued sustainable growth with consumers in those states.”
AGA
American Attitudes Toward Casino Gaming, Sports Betting Reach High-Water Marks
Americans are increasingly embracing casino gaming and sports betting as acceptable forms of entertainment and responsible industries, according to new consumer survey results from the American Gaming Association (AGA). The new data comes ahead of Responsible Gaming Education Month this September and on the eve of the seventh NFL season with widespread legal wagering.
Among new high-water marks in consumer sentiment, 75% of Americans believe the gaming industry behaves responsibly in the communities where it operates, 9 in 10 Americans view sports betting as an acceptable form of entertainment, and 75% of Americans support legal sports betting in their home state.
“These latest survey results highlight a consistent trend over the years: as gaming expands to new audiences, Americans increasingly see the benefits of a legal, regulated gaming marketplace that contributes to communities, prioritizes responsibility and provides unmatched entertainment,” said Joe Maloney, AGA Senior Vice President, Strategic Communications.
The study reveals particular increases in favorable views toward the industry’s commitments to responsible gaming, with 65% of Americans now saying the gaming industry is committed to encouraging responsible gaming and combating problem gambling—a notable rise from 55% last year. This confidence is even stronger among those who engage with the industry directly, with 81% of physical casino players and 88% of sports bettors agreeing with this sentiment, up from 70% and 78%, respectively last year.
This sentiment is driven by increased perceptions across several areas:
- Responsible Marketing and Advertising: Americans are taking notice of the legal industry’s efforts around responsible marketing and advertising marketing, with 65% of respondents saying they believe the industry is truthful in its marketing and advertising, up from 58% last year. Additionally, 73% view the industry as responsible in its marketing efforts, up from 68% in 2022.
- Effectiveness of Responsible Gaming Programs: Data shows 66% of Americans believe the gaming industry’s responsible gaming programs are effective, up from 59% last year. Among those who participate in gaming, 79% of physical casino players and 85% of sports bettors agree that these programs are effective.
- Increased Awareness of Responsible Gaming Messages: The study shows a significant rise in the number of Americans exposed to responsible gaming information. Specifically, 46% of land-based casino players and 57% of sports bettors noted an increase in responsible gaming messaging. Notably, 66% of all Americans say they have encountered responsible gaming messaging in the past year, up from 56% in 2022.
- Familiarity with Responsible Gaming Resources: Awareness of responsible gaming resources has grown, with 76% of Americans familiar with at least one responsible gaming resource, an increase from 65% in 2022. Awareness is particularly high among industry participants, with 92% of land-based players and 96% of sports bettors familiar with at least one responsible gaming resource.
“The gaming industry’s responsibility efforts are stronger than ever, and consumers are noticing,” continued Maloney. “As we embark on another Responsible Gaming Education Month, we’re more energized than ever to continue our work to give consumers the legal, safe and fun gaming experiences that they want and deserve.”
AGA
DraftKings Set to Launch Mobile Sports Betting in North Carolina on March 11
Today, DraftKings Incorporated (DraftKings) (Nasdaq: DKNG) announced plans to launch its top-rated online sportsbook in North Carolina on March 11, 2024. This announcement is the culmination of DraftKings’ continued work with stakeholders and regulators across North Carolina to offer fans a responsible form of sports betting. Earlier this year, DraftKings and NASCAR agreed to terms on a written designation agreement, paving the way for the digital sports entertainment and gaming company to operate in the state. Once live in North Carolina, the DraftKings Sportsbook will be available in 27 United States states, in addition to Ontario, Canada.
North Carolina is known for its strong sports culture, housing the majority of the NASCAR industry, professional teams in the NFL, NBA and NHL as well as several universities competing at the Division-I level. Starting from March 11, DraftKings will provide eligible fans in the state several new and responsible ways to get in on the action. DraftKings’ online sportsbook provides a wide variety of betting markets and key offerings such as same-game parlays, in-game betting, special odds boosts and more on a safe, regulated platform with various customer protections in place such as deposit and time limits, access to responsible gaming resource materials, cool off and self-exclusion features along with DraftKings’ all new My Stat Sheet, an innovative responsible gaming feature that shows customers exactly how much time they’ve spent on DraftKings and the total amount of deposits they’ve placed on the platform.
“With the NCAA Tournament right around the corner and the NASCAR season in full throttle, we are thrilled to be launching our top-rated sportsbook app in North Carolina,” the President for DraftKings North America, Matt Kalish, said. “‘The Tar Heel State’ is home to a passionate fanbase and some of the most iconic college basketball programs of all time, making this an exciting time to introduce legalized online sports betting. We’re proud to be working alongside NASCAR as our market access partner and look forward to enhancing the fan experience across North Carolina with a fun, safe and seamless sports betting product.”
To celebrate the launch of legalized mobile sports betting going live in North Carolina, DraftKings, in collaboration with NASCAR, is teaming up with Carolina Panthers legend Greg Olsen for a ceremonial first bet on March 11, 2024. The event will take place at the NASCAR Hall of Fame in Charlotte and feature remarks from Olsen as well as DraftKings Chief Commercial Officer Jeremy Elbaum and North Carolina State Representative Zack Hawkins.
In addition to hosting the ceremonial first bet in North Carolina on March 11, DraftKings is also recognizing Problem Gambling Awareness Month (PGAM) in March, led by the National Council on Problem Gambling (NCPG) to increase public awareness of problem gaming and the availability of prevention, treatment and recovery services. DraftKings works closely with the NCPG to highlight the company’s responsible gaming initiatives and resources such as cool offs, limitations, key partnerships and mental health services.
Both active members of the American Gaming Association (AGA), DraftKings and NASCAR are committed to promoting the AGA’s Have A Game Plan: Bet Responsibly public service campaign, which educates customers on responsible gaming best practices such as establishing and adhering to a budget and only engaging with legal, regulated operators. DraftKings is committed to creating inclusive and responsible pathways for people to build, create, imagine and innovate through the DraftKings SERVES program.
Eligible customers in North Carolina can access the latest betting markets and more by downloading the DraftKings Sportsbook app available via iOS and Android. DraftKings is committed to providing customers with resources to help bet responsibly. Customers can review DraftKings’ responsible gaming tools here. For additional problem gaming support or services, North Carolina customers can call 1-800-GAMBLER.
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