The American Gaming Association (AGA) reported that industry executives were far more optimistic about growth during the third quarter of the year in its Gaming Industry Outlook, a notable turnaround from earlier in 2025.

A survey conducted by Oxford Economics from Aug. 26 to Sept. 8 elicited responses from 28 senior gaming executives spanning multiple verticals and industry points. It included international and domestic gaming companies, equipment suppliers, tribal operators, and iGaming and sports betting operators.

Some of the reasons for the bullishness are performance. The Gaming Conditions Index, a series of economic indicators that include gaming revenue, employment, wages, executive sentiment, and casino hotel event activity, were up 3.1% compared to Q3 2024. It was the first expansion of the calendar year and bucked a trend of contraction of less than 1% in each of the first two quarters of 2025.

“Following a strong summer that underscored the resilience of gaming consumers and the entertainment value of gaming products, the industry’s outlook is the most positive in years,” said AGA Vice President of Research David Forman. “While executives are increasingly concerned about regulatory and tax challenges, they plan to continue reinvesting in capital spending to provide players with compelling gaming options and amenities.” 

So what’s going on that’s good?

When the bottom line is good, bosses tend to feel good. That is one takeaway as industry executives noted rising revenue and more consumer activity. Coupled with a decrease in promotional spend, balance sheets become stronger, which leads to optimism.

Executive sentiment was a net positive of 7.1%, the highest level it has been since ladning at 24.7% in the third quarter of 2022. Those surveyed envision a strong Q4 on the horizon, evidenced by a dramatic shift in near-term outlook sentiment to 11% net positive. It was minus-18% earlier in 2025.

The study also noted that RFPs (Request for Proposals) for business meetings and social events at casinos continue to exceed pre-pandemic levels. The 136.3 index for Q3 was up 13% compared to last year and the highest of the last seven quarters.

Additionally, more than one in four industry executives (26%) believe there will be stronger business conditions over the next six to 12 months. Many respondents cited an expected increase in revenue growth (54% positive) and balance sheet health (39% positive) as reasons for optimism.

Concerns? We got a few, too

Amid anxiety regarding the mixed economic forecast and an expected weakening of the labor market, state regulatory concerns were noted by more executives now than six months ago. Some cited “slow and uncertain regulation around iGaming” and “unregulated gaming expansion” as reasons for worry, and the percentage of those who expressed federal regulatory concerns was roughly the same.

The weaker labor market looks to be weighing on those surveyed as there was a net negative of minus-32% when it came to new employee hiring. Concerns over wage increases also registered a net negative at minus-14%.

Gaming vendors and suppliers expect decreases in sales for gaming units to replace existing ones as well as potential gaming units for new venues or expanding ones.