AGA anticipates cooling-off for US iGaming in 2025
AGA warns of a slowdown in US iGaming, with CEO fears over the economy rising and growth expectations softening, signaling a potential cooling period for the industry in the next 12 months.
iGaming in the US appears primed to be heading into a cooling-off period over the next 12 months. That is the worrying and damning prediction made by the American Gaming Association (AGA) who shared their thoughts after carrying out their biannual study of trends and forecasts in the gaming sector.
During 2024, iGaming, broadly speaking across the US, experienced a huge surge, and it has seen some states embrace it. Although iGaming operators appear to be well positioned, it is thought that fears over the economy are driving the lukewarm atmosphere.
Indeed, the report suggested that the level of fear among CEOs in relation to iGaming grew by 22% compared to the findings published in the 2024 AGA spring report.
CEO Concerns Highlighted
Apart from an overall industry slide, CEOs are convinced that the pace of hiring and revenue growth will begin to decline. This was outlined in the Future Conditions Index, which takes into account the opinions of gaming CEOs.
Key points include:
Growth expectations have softened relative to six months ago.
Executives expecting decelerating growth now outweigh those expecting acceleration.
The economy, while solid recently, is expected to slow moderately in coming quarters.
Short-Term Outlook
Aside from trepidation over the economy, the AGA’s outlook report shows the number of CEOs who think gaming conditions will fall over the next 3 to 6 months.
Key takeaways:
28% more CEOs predict worsening conditions than those who are optimistic.
The slowdown could impact both hiring and revenue trajectories.
Uncertainty is amplified by broader macroeconomic conditions.
Political and Market Factors
The US will undergo some significant changes over the next few months, and with an election on the horizon, it will be interesting to see what stance the incoming president takes.
Current context:
Political transitions may reshape regulatory or economic environments.
Operator positioning remains strong despite concerns.
Market dynamics could shift depending on federal and state-level developments.
Conclusion: While AGA’s findings signal caution and a cooling period ahead, industry resilience and political outcomes will ultimately determine the true trajectory of iGaming in the US.
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