The latest reports indicate that the US gaming industry is experiencing significant challenges, including fluctuating tariffs and ongoing supply chain issues. The American Gaming Association’s recently released Gaming Industry Outlook reveals a sharp contraction in real economic activity during the first quarter of 2025. Despite the current struggles, the report includes a silver lining: a more optimistic long-term outlook from industry executives, suggesting potential recovery as uncertainties dissipate.
Key Points
- Real economic activity in the US gaming industry fell 0.9% in Q1 2025, marking the most rapid decline since the pandemic.
- Executive sentiment remains slightly negative, though long-term projections show hope for recovery.
- The industry faces challenges from tariffs, which are predicted to raise consumer prices significantly.
- Despite current pessimism, expectations for future revenue growth and capital investment are improving.
- Demand for casino hotel services is stabilising, with RFPs for events rising compared to the previous year.
Why should I read this?
If you’re in or interested in the gaming industry, this article is a must-read. It breaks down the current economic climate affecting gaming and offers insights from industry leaders about what could happen next. Understanding these trends is crucial for anyone looking to navigate the future of gaming—and we’ve done the hard work of teasing out the essential bits for you!