Executives in the gaming industry stay optimistic as industry growth persists; contracts for sports events are causing growing concern in the industry

(AsiaGameHub) –   The American Gaming Association has reported a 21.4 per cent net positive outlook among executives, despite 81 per cent identifying sports event contracts on prediction markets as a significant risk.

US – The American Gaming Association (AGA)’s latest Gaming Industry Outlook has shown that gaming executives hold anoptimistic view about the industry’s future, as key performance indicators continue to improve. However, new risks—especially those linked to prediction market platforms offering sports event contracts—are becoming a growing source of concern for industry leaders, according to the survey.

The Gaming Conditions Index (GCI) reflects real economic activity across gaming revenue, employment, wages, executive sentiment, and casino hotel event activity, which grew by 1.5 per cent year-over-year, indicating ongoing confidence and momentum within the sector.

Bill Miller, AGA President and CEO, said: “The legal, state- and tribal-regulated gaming industry continues to show resilience and adaptability amid a rapidly changing economic climate.”

“Operators are concentrating on investing in innovation and providing top-tier entertainment experiences, while also managing a shifting competitive environment and regulatory framework.”

Key findings include:

• Over 60 per cent of executives anticipate increased capital investment, higher revenues, and improved balance sheets over the next six to 12 months.
• Executive sentiment reached its highest level since Q3 2022, with a 21.4 per cent net positive outlook across core business indicators.
• 62 per cent of executives intend to raise capital investments over the following six to 12 months, while promotional spending is expected to decrease for the second consecutive survey period.

Emerging threats

Despite strong fundamentals, prediction markets offering sports event contracts have emerged as a major concern, with 81 per cent of executives naming them a “very significant” threat to the regulated gaming sector.

“Illegal sports betting via sports event contracts is increasingly undermining legal, state- and tribal-regulated operators,” stated Miller. “It’s evident that the legal, regulated industry perceives this as a serious challenge and will persistently oppose it to safeguard the integrity of our industry.”

Executives also highlighted several additional evolving risks affecting operations:

• Inflation, tariffs, and geopolitical uncertainties remain key operational constraints, while federal regulatory issues have surged in importance.
• Employee wages were cited by 54 per cent of respondents as the primary cost pressure, followed by tax and regulatory policy shifts.
• Competition from new forms of gaming was flagged by 42 per cent of participants (up from 25 per cent in Q3 2025).

Methodology

The AGA Gaming Industry Outlook is produced biannually by Oxford Economics. It delivers a timely assessment of recent industry performance and future expectations based on executive sentiment, gaming activity, and economic metrics. The Q1 2026 survey was conducted between March 23 and April 8, 2026. A total of 26 executives participated, including senior-level representatives from major international and domestic gaming firms, gaming equipment providers, and online gaming and sports betting operators affiliated with AGA.