In the third quarter, the vast majority of gaming executives viewed their current business situation as “good” or “satisfactory.” The percentage of those with a good outlook, however, dropped from 62 percent in the first quarter to 42 percent in the
The overall positive results shouldn’t be surprising. The gaming sector has enjoyed explosive growth over the past few years. LegalizedNevada reported “The significant expansion and record demand for legal, regulated gaming in the post-pandemic era have allowed our members to consistently invest in our product and people to deliver innovative entertainment options for American adults,” said AGA President and CEO Bill Miller.
Likewise, executives’ slightly more cautious outlook is also understandable. When asked about their top challenges, 58 percent of executives mentioned inflation and interest rates as potential headwinds to business. Higher US interest rates not only make business investments more costly, but they also have a history of triggering recessions.
Despite, the slight shift in outlook, gaming executives still plan to invest in their businesses over the coming year. They are, however, changing the focus of their investments. This reporting period shows a significant increase in the number of executives planning to increase their capital spending on food and beverage. Casino floor slots also appear to be gaining traction for increased capital investment.
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