American Gaming Association
Gaming CEOs Positive on Current Business Conditions, Neutral on Future Outlook
Gaming executives remain upbeat about current business conditions with a neutral outlook on future conditions, according to the American Gaming Association’s (AGA) Gaming Industry Outlook presented in partnership with Fitch Ratings.
The overwhelming majority of gaming executives surveyed view the current business situation as good (42%) or satisfactory (55%), moderating from Q1 when 62% reported good conditions and 35% described them as satisfactory. When asked about future business conditions, more than half expect the next three to six months to be about the same (58%), with the remainder almost evenly split between those who anticipate better or worse conditions (3% net positive).
“The significant expansion and record demand for legal, regulated gaming in the post-pandemic era have allowed our members to consistently invest in our product and people to deliver innovative entertainment options for American adults. Gaming CEOs remain focused on delivering world class entertainment options against the backdrop of broader economic uncertainty,” said AGA President and CEO Bill Miller.
Current Conditions Index
The Current Conditions Index measured 100.6, reflecting slight growth of 0.6% in casino gaming-related economic activity in Q3 2023 relative Q2 2023. Because gaming revenue and employee wages are adjusted for inflation, the Current Conditions Index was tempered by persistent high inflation through Q3 2023.
Future Conditions Index
The Future Conditions Index stands at 99.6, indicating annualized industry economic activity over the next six months is expected to decrease slightly. This outlook reflects Oxford Economics’ forecast that the U.S. economy will experience a mild recession beginning in Q4 2023. However, even with an anticipated slow down in consumer spending, consumer survey results continue to indicate that more than one-third of adults expect to visit a casino during the next 12 months, consistent with prior quarter results.
Gaming Executive Panel
Executive views on future financial conditions are mixed. On balance, respondents expect that their overall balance sheet health will improve (26% net positive) over the next three to six months and that their pace of capital spending will increase (24% net positive). However, on net, they expect the pace of revenue growth to decrease (13% net negative responses) and describe access to credit as somewhat restrictive.
At the sector level, gaming supplier CEOs broadly expect the pace of unit sales to increase through the end of the year while many operator CEOs plan to increase capital investments in their food and beverage offerings.
- Casino operators expect gaming units in operation to increase (11% net positive), while 67% expect greater than normal investments in food and beverage and 33% expect greater than normal capital spending on gaming machines.
- Gaming equipment manufacturers expect units for new or expansion use to increase (44% net positive), with an equal share expecting sales of gaming units for replacement use to increase.
When asked about top business challenges, 58% of executives cited inflation or interest rate concerns as factors limiting operations, followed by overall uncertainty of the economic environment (55%).
American Gaming Association
AGA Statement on Introduction of SAFE Bet Act
American Gaming Association Senior Vice President of Government Relations Chris Cylke issued the following statement in response to Sen. Richard Blumenthal (D-CT) and Rep. Paul Tonko (NY-20) introducing the SAFE Bet act, which would implement a “nationwide prohibition” on sports betting:
“Today’s regulated sports wagering operators are contributing billions in state taxes across the U.S., protecting consumers from dangerous neighborhood bookies and illegal offshore websites, and working diligently with over 5,000 state and tribal regulators and other stakeholders to ensure a commitment to responsibility and positive play. Six years into legal sports betting, introducing heavy-handed federal prohibitions is a slap in the face to state legislatures and gaming regulators who have dedicated countless time and resources to developing thoughtful frameworks unique to their jurisdictions, and have continued to iterate as their marketplaces evolve.”
American Gaming Association
MGM Resorts & BetMGM to Increase Responsible Gaming Messaging at NFL Stadiums During Upcoming Season
MGM Resorts International and BetMGM announced that they are once again partnering with the American Gaming Association (AGA) to promote Responsible Gaming Education Month (RGEM 2024) in September. The two companies will execute their responsible gaming campaign at designated National Football League (NFL) stadiums for the second year, with increased exposure for GameSense. GameSense is an industry-leading responsible gaming program first developed and licensed to MGM Resorts in 2017 by the British Columbia Lottery Corporation (BCLC). The program focuses on positive, transparent, and proactive engagements with guests and customers about how to gamble responsibly. With this development, GameSense marketing will appear more often and in more prominent venue locations during each game.
GameSense messaging will be promoted at the following stadiums:
• Acrisure Stadium (Pittsburgh Steelers)
• Allegiant Stadium (Las Vegas Raiders)
• Empower Field at Mile High (Denver Broncos)
• Ford Field (Detroit Lions)
• GHEA Field at Arrowhead Stadium (Kansas City Chiefs)
• M&T Bank Stadium (Baltimore Ravens)
• MetLife Stadium (New York Jets)
• Nissan Stadium (Tennessee Titans)
• State Farm Stadium (Arizona Cardinals)
In 2023, MGM Resorts and BetMGM were among the first gaming operators to promote responsible gaming through marketing within League stadiums.
“We’re excited to bring responsible gaming initiatives directly to fans in these NFL venues again this season. We are setting a new standard for safety and awareness in the industry. At BetMGM, we believe that protecting our players and promoting responsible play is essential to the future of sports betting,” Rhea Loney, Chief Compliance Officer at BetMGM, said.
BetMGM will also add to its catalog of advertisements in the coming months that highlight its comprehensive responsible gaming resources. The spots will feature brand ambassadors sharing engaging messaging, similar to its highly regarded responsible gaming commercial featuring NHL MVP Connor McDavid.
Also, coinciding with RGEM 2024, MGM Resorts is announcing a $440,000 contribution to fund responsible gaming research through the International Center for Responsible Gaming and Kindbridge Research Institute. These studies aim to advance industry best practices and fill significant research gaps on under-studied populations, including women military Veterans.
Stephen Martino, SVP and Chief Compliance Officer at MGM Resorts, said: “The importance of responsible gaming research funding cannot be overstated. As a gaming industry leader, it’s imperative that our company supports efforts to better understand the diverse impact gambling has on various populations, including those that may be at greater risk of developing problematic behaviors.”
Throughout RGEM 2024, MGM Resorts and BetMGM will continue to conduct extensive training to raise employee awareness of responsible gaming. Recently, MGM Resorts’ GameSense Advisor Program certified more than 500 customer-facing employees, equipping them with the skills and confidence to educate customers about casino games and empower them to make informed decisions. BetMGM will also deploy extensive employee training, including additional education for its VIP Staff, while advancing responsible gaming through lived experiences with its EPIC Global Solutions partnership.
Additionally in September, new GameSense messaging will be displayed prominently on table games throughout MGM Resorts’ properties nationwide. Similar messaging will continue to be featured on all slot machines, 8000 of which include QR codes offering access to responsible gaming information and educational materials from GameSense. Responsible gaming tips will also appear on MGM Resorts’ Las Vegas marquees and on more than 35,000 screens across the company’s portfolio. BetMGM will release improved responsible gaming tools within its platform as well. These tools are designed to help players manage their budgets, stay within their limits, and promote a responsible and sustainable entertainment experience.
MGM Resorts and BetMGM continue their partnership with the AGA’s “Have A Game Plan. Bet Responsibly.” public service campaign to educate new and seasoned bettors on responsible sports wagering. The campaign aims to protect customers and reinforces the use of regulated markets, which prioritizes player protection and safeguards.
Joe Maloney, SVP of Strategic Communications at American Gaming Association, said: “Collaboration is integral to strengthening our collective responsibility efforts. Both in their work with the AGA and throughout the legal, regulated gaming industry, MGM Resorts and BetMGM continue to be leaders in forming innovative partnerships that are advancing responsible gaming in meaningful ways.”
American Gaming Association
DraftKings Plans to Launch Mobile Sports Betting in Washington D.C.
DraftKings Inc. has announced its intention to launch its top-rated online sportsbook in Washington D.C., pending licensure and regulatory approvals. The expected arrival into the nation’s capital follows a market access agreement with D.C. United, which would pave the way for the digital sports entertainment and gaming company to operate in The District of Columbia. Once live, Washington D.C. would become the 29th jurisdiction in North America in which the DraftKings Sportsbook operates.
“It has been incredible to see legalized sports betting grow rapidly over the past six years, and with plans to launch our online sportsbook in D.C., DraftKings looks forward to expanding its presence in more than half the country. We would like to thank the D.C. Council for creating a path to bring DraftKings’ top-rated sportsbook to the nation’s capital. Together with D.C. United, we look forward to delivering fans a best-in-class experience through our customer-friendly product,” said Matt Kalish, President, DraftKings North America.
Washington D.C. is home to professional sports teams across the MLB, MLS, NBA, WNBA, NWSL and NHL and soon, eligible sports fans will have access to a wide variety of betting markets and key offerings such as same-game parlays, in-game betting, special odds boosts and more on DraftKings online sportsbook.
“With the D.C. Council’s recent decision to expand the world of sports betting in D.C., we look forward to working with DraftKings to introduce their online sportsbook as another way for D.C. residents to bet in the city. Our goal is to always make every fan experience seamless, and this platform will help us to deliver on that promise,” said Danita Johnson, President of Business Operations for D.C. United.
Responsible gaming is one of DraftKings’ top priorities and a core part of the company’s mission. As a safe, regulated sportsbook, DraftKings is committed to offering robust consumer protection standards. Available tools and resources include deposit and time limits, access to responsible gaming resource materials, cool off and self-exclusion features and “My Stat Sheet” – an innovative feature to track personalized gaming statistics and insights.
As an active member of the American Gaming Association (AGA), DraftKings is 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 providing a safe and fun gaming environment that all customers can enjoy responsibly in states where sports betting is legal. A core part of the company’s mission, DraftKings has robust consumer protection standards on its platforms and provides consumers with responsible gaming tools and resources while leveraging advanced technology to detect signs of potentially problematic behavior.
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