Gaming Executives Turn Optimistic as Industry Outlook Improves
The American gambling industry has shown renewed confidence for the first time in more than a year, according to the latest report released by the American Gaming Association (AGA).
The Gaming Industry Outlook found that industry executives expect stronger revenues, increased customer activity, and healthier balance sheets heading into 2026.
The outlook combines survey responses from key industry leaders with economic performance data to assess current business conditions and future expectations.
Its latest results indicate that the sector may be stabilizing after a period of slower growth and cautious sentiment since early 2024.
David Forman, the AGA’s Vice President of Research, commented:
Following a strong summer that underscored the resilience of gaming consumers and the entertainment value of gaming products, the industry’s outlook is the most positive in years.
Executive Confidence Rebounds After a Prolonged Drip
The AGA’s sentiment index turned 7.1% net positive in the third quarter of 2025, the first positive reading since early 2024.
The outlook points to a clear recovery in confidence among casino operators, equipment suppliers, and executives in the sportsbook and iGaming segments.
The share of executives reporting a near-term outlook rose to 11% net positive, up from -18% earlier this year.
Looking ahead six to twelve months, optimism was particularly strong, with 26% of respondents expecting a better business environment and none anticipating a decline.
This represents the highest long-term confidence level since late 2022, suggesting the industry leaders see the recent slowdown as temporary.
Stronger consumer spending is helping American casinos regain momentum.
Improving Business Conditions Support Stronger Outlook
The AGA’s Gaming Condition Index (GCI), which tracks real economic activity in the sector, also reflected the improved sentiment.
The index rose 3.1% year-over-year in the third quarter of 2025, its first expansion since late 2024.
According to the AGA, steady consumer spending and a stabilization in wage growth have helped the industry regain momentum after two consecutive quarters of modest declines.
These factors, together with easing cost pressures, allowed gaming operators to recover from earlier contractions that followed a slowdown in discretionary spending.
More than half of the executives surveyed by the AGA (54%) anticipate higher revenues over the coming year, while nearly four in ten (39%) expect their financial position to strengthen.
Concerns over inflation and borrowing costs, which weighed heavily on the industry earlier, have eased. Only 43% of respondents cite inflation and interest rates as major challenges, down from 68% earlier in the year.
Regulatory Uncertainty Persists Despite Recovery
While industry sentiment has improved, many gaming executives still see regulation as a major obstacle.
The AGA report found that half of the respondents cited state-level rules and policy changes as limiting operations, the highest level of concern since early 2023. Executives highlight issues such as the slow rollout of iGaming laws as well as uneven tax and licensing frameworks across states.
Several recent state actions reflect that tension. In California, Assembly Bill 831 seeks to ban gambling-style sweepstakes that mimic casino play, a move tribal groups warn could affect their sovereignty.
Jordan Maynard, Massachusetts Gaming Commission Chair, has compared the current gaming market to the early days of the car industry, saying it is like “a highway without speed limits, cars without seatbelt dingers.”
Despite these regulatory challenges, the AGA’s David Forman said the overall trend still points to continued confidence:
While executives are increasingly concerned about regulatory and tax challenges, they plan to continue reinvesting in capital spending to provide players with compelling gaming options and amenities.
