Gaming executives remain optimistic as industry growth continues; sports event contracts drive rising industry concern
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 revealed that gaming executives have expressed anoptimistic perspective regarding the future conditions of the industry, as key performance indicators show continued improvement. However, emerging risks – particularly from prediction market platforms offering sports event contracts – are increasingly shaping industry concerns, according to the survey.
The Gaming Conditions Index (GCI) shows real economic activity – measured across gaming revenue, employment, wages, executive sentiment, and casino hotel event activity – grew 1.5 per cent year-over-year, reflecting sustained confidence and momentum in the industry.
Bill Miller, AGA President and CEO, said: “The legal state- and tribal-regulated gaming industry continues to demonstrate resilience and adaptability in a dynamic economic environment.
“Operators are focused on investing in innovation and delivering world-class entertainment, while also navigating an evolving competitive and regulatory landscape.”
Key findings include:
- More than 60 per cent of executives expect increased capital investment, higher revenues, and stronger 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 key business indicators.
- 62 per cent of executives plan to increase capital investments over the next six to 12 months, while promotional activity is expected to decline for the second consecutive survey.
Emerging threats
Despite strong fundamentals, prediction markets offering sports event contracts have emerged as a leading concern, with 81 per cent of executives identifying them as a “very significant” risk to the regulated gaming industry.
“Illegal sports betting through sports event contracts is increasingly encroaching on legal, state- and tribal-regulated operators,” said Miller. “It’s clear the legal, regulated industry views this as a threat, and will continue to fight back and protect the integrity of our industry.”
Executives also cited several additional evolving risks impacting operations:
- Inflation, tariffs, and geopolitical risk continue to be major factors limiting operations, while federal regulatory concerns increased sharply.
- 54 per cent of respondents cite employee wages as the top expense pressure, followed by tax and regulatory policy changes.
- 42 per cent pointed to competition from new forms of gaming (up from 25 per cent in Q3 2025).
Methodology
The AGA Gaming Industry Outlook is prepared biannually by Oxford Economics. It provides a timely measure of recent industry growth and future expectations based on executive sentiment, gaming activity, and economic indicators. The Q1 2026 survey was conducted between March 23 and April 8, 2026. A total of 26 executives participated, representing senior-level AGA member executives from major international and domestic gaming companies, gaming equipment suppliers, and igaming and sports betting operators.
