American Gaming Association: ‘Gaming Will Thrive’ In 2H2021

Article by : Helen Feb 5, 2021

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2020 was rough on the U.S. casino industry, but American Gaming Association CEO and President Bill Miller has a positive outlook on the future of the country’s gambling in the coming year. Undoubtedly, there are several good reasons to remain optimistic about the industry’s rebound this year: undergoing vaccination efforts, careful reopening that we are bound to see more of, and the increasing confidence and demand on the consumers’ side.

There’s huge pent-up demand for gaming—and I’m upbeat about the second half of the year in particular. As vaccines roll out, people will be excited to travel, hungry for entertainment, and desperate to get out and have fun again. That’s an environment where gaming will thrive.

There is enough evidence that the United States’ casino industry is on the right track towards recovery. In 3Q2020 (latest quarterly data available), U.S. commercial gaming revenue was at 81% of the 3Q2019 level, totaling $9.04 billion. The quarter’s results were an impressive rebound from the second quarter of 2020, showing a whopping 294% quarter-on-quarter increase.

However, in November 2020 (latest monthly data available), commercial gaming revenue dropped 14.8% compared to the prior month ($2.92 billion). On the other hand, the monthly revenue remained only slightly less than a fifth down from the 2019 levels, at 84.1% of November 2019 results.

The main drivers behind the industry’s rebound are sports betting and iGaming: they showed a year-on-year increase in gross gaming revenues of 144.7% and 160.7%, respectively, in November 2020. As for the quarterly results, the trend remains the same: sports betting revenue was up 47.1% compared to 3Q2019, whereas iGaming brought in 232.4% more than in the prior year.

As for consumer confidence, according to the association’s survey, one out of three Americans are planning to go to a casino at some point in 2021. This is the highest rate since March 2020. The survey results are a good sign that consumers have their confidence in the casino visit safety restored, slowly but surely. Another finding discovered by AGA is that 80% of those making plans to play at a casino this year also believe that the casino industry “has done a good job” at reopening safely.

Together with the general outlook on what 2021 has in stock for the casino industry, American Gaming Association has also published its four priorities for this year. First and foremost, in 2021, the organization is set out to work hard on securing a place for the industry players, including tribal nations, in COVID-19 relief legislation.

That explains the second strategic priority of the American Gaming Association, “developing new champions to promote gaming’s recovery” in Congress and the Biden Administration, or, in other words, finding support among the gaming-related decision-makers. The third priority for AGA is “blocking harmful policies and advancing specific reforms to enhance industry competitiveness.” In practice, the organization is determined to oppose any legislation that would raise taxes on the gambling industry on the federal level while working towards encouraging more states to legalize sports betting.

Finally, the American Gaming Association plans to “use proprietary research and strategic communication efforts” to make sure the industry’s voice “is heard.” The organization is set out to commission original research that would “provide unique insights” into the industry, letting its target audience peek behind the curtain and understand the industry’s impact better. AGA is also committed to supporting responsible gaming efforts.