U.S. gaming executives are more positive about the industry’s near-term outlook, even as prediction markets become a larger concern for regulated operators.
The American Gaming Association’s latest Gaming Industry Outlook showed real economic activity in the sector rose 1.5% year-on-year in Q1 2026. More than 60% of member executives expect higher capital investment, stronger revenue and healthier balance sheets over the next six to 12 months.
Executive sentiment reaches highest level since 2022
Gaming executive sentiment rose to 21.4% net positive, the highest level since Q3 2022. Executives were more positive across business conditions, revenue growth, customer activity and capital investment.
Revenue expectations were one of the strongest areas. Executives reported a 56% net positive outlook for revenue growth and the same reading for balance sheet health. Customer activity was also positive, with a 32% net positive outlook.
Capital investment remained a key part of the outlook. Some 62% of executives expect to increase capital spending over the next six to 12 months, while promotional activity is expected to fall for a second straight survey.
Prediction markets move up the risk list
Prediction markets are now one of the main concerns for the regulated gaming industry. Some 81% of executives view sports event contracts on prediction market platforms as a very serious threat.
Executives raised concerns over unregulated and untaxed competition, further expansion into gaming markets and damage to industry credibility. The issue has become more urgent as sports event contracts draw attention from state gambling regulators, federal officials and gaming trade groups.
Federal regulatory concern is also rising. Some 46% of executives now see federal regulation as a factor limiting operations, up from 29% in Q3 2025. Competition from new forms of gaming rose to 42%, up from 25% last fall.
Costs and uncertainty still pressure operators
Economic and political uncertainty stayed as the main pressure point. Tariffs, inflation and geopolitical risk were listed as factors affecting supply chains and margins.
Wage pressure also stayed high. Employee wages were the most-cited expense concern, named by 54% of executives. Hiring expectations remained weak for a seventh straight survey, even as companies became more positive about revenue and investment.
Casino hotel event demand added another positive signal. Requests for proposals for casino hotel events were 2% higher than a year earlier and remained above pre-pandemic levels.
Outlook is stronger, but operators want rules clarified
The report was prepared for AGA by Oxford Economics and is based on executive sentiment, gaming activity and economic indicators. The Q1 2026 survey was conducted from March 23 to April 8 and included 26 senior executives from major gaming companies, suppliers, iGaming operators and sports betting operators.
