Your Source For Michigan Gaming News

Since 1997, the Michigan Gaming website has been a comprehensive resource regarding gaming in the state of Michigan. This site is an RMC Ventures, LLC publication, with contributions by the original creators of the site, Attorney David Waddell and Gaming Analyst Robert Russell, and additional contributions by Attorney J.J. Burchman.

Mr. Waddell,  Mr. Russell and Mr. Burchman are also associated with Regulatory Management Counselors, P.C., which proactively assists clients in managing regulatory issues in an effort to maximize company profits and avoid legal problems.

According to a press release issued this week, the American Gaming Association’s (AGA) newly launched Gaming CEO Outlook shows confidence in expanded industry growth, with almost half of AGA-member CEOs expecting improved business conditions into 2022. Participating CEO positivity is driven by anticipated increases in new hiring (71%), wage growth (63%), and capital investment (39%).

“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.”

While the overall outlook is positive, challenges remain. More than two-thirds (71%) of CEO respondents cited supply chain issues as a factor limiting operations. Labor force shortages (63%), consumer health concerns (46%), and lagging meetings and events demand (38%) are also widely cited as impeding short-term growth.

The Gaming CEO Outlook, prepared for the AGA by Oxford Economics, provides a snapshot of the current and future economic health of the industry based on executive sentiment, employment, casino visitation plans, gaming revenue, and other key economic indicators. The results are informed by a survey of AGA member CEOs and executives representing equipment suppliers, casino operators, and sportsbooks. The Q3 2021 survey was conducted between August 16 and September 14, 2021. 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.

“We are a more resilient industry because of the COVID-19 pandemic,” said Aristocrat Technologies CEO and AGA Chairman Trevor Croker. “As the gaming industry looks to 2022 and beyond, our impressive recovery will continue to create jobs, support communities, and generate needed taxes.”

The Gaming CEO Outlook includes two separate indices, the Current Conditions Index and the Future Conditions Index—both of which reflect strong business conditions.

Current Gaming Conditions

The Current Conditions Index of 115.1 reflects exceptionally strong growth in gaming revenue, employment, and employee wages and salaries over the past quarter. This represents one of the fastest periods of growth in the industry over the past 20 years. Notably, all CEO panel participants assessed the current gaming business climate as “good” (54%) or “satisfactory” (46%).

Looking Ahead: Expansion Continues

The Future Conditions Index, which provides a leading indicator of changes in industry conditions, also shows positive results at 102.7. Nearly half of gaming executives expect future business conditions to further improve from today’s already strong climate, and just nine percent expect conditions to deteriorate over the next six months.

Among gaming operators, half plan to increase hotel and food and beverage amenities, while 43 percent plan to increase capital investments in gaming machines.

Gaming suppliers are also optimistic: over the next six months, 75 percent expect sales of gaming units for replacement use to increase and 63 percent expect sales of new units to improve.

The gaming industry’s recovery, including a record-breaking second quarter, is well underway and current executive sentiment points to a robust end of the year and strong start to 2022. 

 

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