US gaming industry changed to "stable": Moody's

The outlook for the US gaming industry has been changed to stable from negative, Moody's Investors Service says in a new report.

The outlook was changed to negative in June of 2104 due in part to declining revenues, but this trend has since reversed, with revenue expected to increase over the next 12 to 18 months, Moody’s said in a media release.

"The stable outlook reflects our view that gaming revenue, which is a leading indicator of company profitability, will increase up to 2% each month on a year-over-year basis over the next one to two years," said Moody's Investors Service senior vice president Keith Foley. 

"This will translate to a 3% to 4% increase in industry EBITDA during the same period."

In total, the 18 states Moody's tracks reported a 4.1% increase in year-over-year monthly gaming revenue in May 2015 and a 4.0% increase in April. In May, all but New Jersey and Connecticut saw improvement.”  

American Gaming Association president and CEO Geoff Freeman said in a statement that the report highlights the gaming industry is growing despite stiff competition.

“[E]ven in the face of intense competition, the gaming industry is finding ways to grow and serve as strong community partners. However, it’s incumbent upon state officials to review their gaming policies to ensure they promote innovation and reinvestment that will spur greater growth, create more jobs and provide additional tax revenues that support vital public services.”

 

Latest Intelligence

Latest issue

PATA CEO sees slow recovery, but optimism for future

AGB Podcasts