Executive confidence across the U.S. gaming industry surged in the third quarter of 2025 as key performance indicators improved compared to the year’s start, according to the American Gaming Association’s (AGA) latest Gaming Industry Outlook.

Industry leaders expressed optimism driven by rising revenues, healthier balance sheets, stronger consumer activity, and reduced promotional spending, signaling renewed confidence in the sector’s long-term health.

Gaming Conditions Index Shows First Expansion Since 2024

The Gaming Conditions Index revealed that real economic activity—measured through indicators such as gaming revenue, employment, wages, executive sentiment, and casino hotel event performance—grew 3.1% year-over-year in Q3 2025.

This represents the first quarterly expansion since late 2024, reversing the modest contractions seen earlier in the year and reflecting the continued resilience of the U.S. gaming market.

Key Highlights from the AGA Report

Executive sentiment rose to a net positive of 7.1% in Q3 2025 — the highest since Q3 2022 — with outlooks improving across nearly all performance indicators.

The near-term industry outlook turned sharply upward to 11% net positive, a significant jump from -18% earlier in 2025.

26% of respondents now expect stronger business conditions over the next 6–12 months — marking the most optimistic long-term outlook in three years.

“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 David Forman, AGA Vice President of Research. “While executives are increasingly mindful of regulatory and tax challenges, they remain committed to reinvesting in capital spending and enhancing the player experience.”

Regulatory and Tax Concerns Remain Key Challenges

Despite the positive momentum, the AGA survey found that regulatory and tax pressures are becoming a growing concern among industry executives.

50% of respondents now cite state-level regulatory concerns as a factor limiting operations — the highest level since the measure was introduced in early 2023.

46% identified tax or regulatory policy changes as putting pressure on profit margins, up from 36% earlier this year.

Even as the industry faces these headwinds, executives remain confident in the long-term strength of U.S. gaming, with expectations that capital investment will remain steady over the next 12 months.