Industry News
Gaming CEOs Positive on Current Business Conditions, Neutral on Future Outlook
Gaming executives remain upbeat about current business conditions with a neutral outlook on future conditions, according to the American Gaming Association’s (AGA) Gaming Industry Outlook presented in partnership with Fitch Ratings.
The overwhelming majority of gaming executives surveyed view the current business situation as good (42%) or satisfactory (55%), moderating from Q1 when 62% reported good conditions and 35% described them as satisfactory. When asked about future business conditions, more than half expect the next three to six months to be about the same (58%), with the remainder almost evenly split between those who anticipate better or worse conditions (3% net positive).
“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. Gaming CEOs remain focused on delivering world class entertainment options against the backdrop of broader economic uncertainty,” said AGA President and CEO Bill Miller.
Current Conditions Index
The Current Conditions Index measured 100.6, reflecting slight growth of 0.6% in casino gaming-related economic activity in Q3 2023 relative Q2 2023. Because gaming revenue and employee wages are adjusted for inflation, the Current Conditions Index was tempered by persistent high inflation through Q3 2023.
Future Conditions Index
The Future Conditions Index stands at 99.6, indicating annualized industry economic activity over the next six months is expected to decrease slightly. This outlook reflects Oxford Economics’ forecast that the U.S. economy will experience a mild recession beginning in Q4 2023. However, even with an anticipated slow down in consumer spending, consumer survey results continue to indicate that more than one-third of adults expect to visit a casino during the next 12 months, consistent with prior quarter results.
Gaming Executive Panel
Executive views on future financial conditions are mixed. On balance, respondents expect that their overall balance sheet health will improve (26% net positive) over the next three to six months and that their pace of capital spending will increase (24% net positive). However, on net, they expect the pace of revenue growth to decrease (13% net negative responses) and describe access to credit as somewhat restrictive.
At the sector level, gaming supplier CEOs broadly expect the pace of unit sales to increase through the end of the year while many operator CEOs plan to increase capital investments in their food and beverage offerings.
- Casino operators expect gaming units in operation to increase (11% net positive), while 67% expect greater than normal investments in food and beverage and 33% expect greater than normal capital spending on gaming machines.
- Gaming equipment manufacturers expect units for new or expansion use to increase (44% net positive), with an equal share expecting sales of gaming units for replacement use to increase.
When asked about top business challenges, 58% of executives cited inflation or interest rate concerns as factors limiting operations, followed by overall uncertainty of the economic environment (55%).
Industry News
Cliff Ehrlich Joins Rush Street Gaming as COO
Rush Street Gaming announced that casino and hospitality veteran Cliff Ehrlich has joined the company as chief operating officer.
Ehrlich assumes the role of Rush Street COO from Bill Keena, a longtime company and industry leader, who plans to retire later this year.
“I’ve admired Rush Street’s strong leadership and steady expansion over the past two decades. I’m thrilled to join this dynamic organization and look forward to contributing to the company’s ongoing success,” said Ehrlich.
Ehrlich’s career began in marketing at the Catskills’ Pines Resort Hotel in the 80s and transitioned in the 90s to casino development and operations. In 1996, he became co-owner of the Monticello Raceway and helped recruit the Oneida Indian Nation to build a casino on the property. Following an initial public offering, Ehrlich led Monticello Casino & Raceway as president, chief operating officer and general manager until 2013.
After consulting with Mohegan Sun regarding Upstate New York development opportunities, in 2015, Ehrlich joined The Downs Racetrack & Casino in Albuquerque, serving as general manager and chief operating officer. He later ran two casinos for The Navajo Nation — Northern Edge and Flowing Water. Since 2022, Ehrlich has been Navajo Nation Gaming Enterprise’s chief operating officer, with oversight of four casinos, a resort destination hotel, travel plaza and food & beverage manufacturing.
“Cliff’s ground-up casino development experience, deep operations background and team leadership ensure that all five Rivers Casino properties remain in great hands. He will continue the strong forward momentum established by Bill Keena, for whom we wish the very best in retirement,” said Tim Drehkoff, CEO of Rush Street Gaming.
Industry News
Wanna.com Welcomes Former MGM President & COO Chuck Bowling to Board of Directors
Wanna.com, the innovative daily fantasy sports gaming platform set to launch across the US, in August, announced the appointment of Chuck Bowling, former President and COO at MGM Resorts International, to its Board of Directors. With an impressive career overseeing prestigious properties such as the Mandalay Bay, Delano, Four Seasons Las Vegas and Luxor, Mr. Bowling brings a wealth of experience and strategic insight to the burgeoning enterprise.
As Wanna.com prepares for its initial launch in approximately 25 to 30 states, Mr. Bowling’s extensive expertise in hospitality and gaming will be instrumental in guiding Wanna.com and Wanna Parlay, through this exciting phase of growth and development. His leadership at MGM, where he was pivotal in enhancing guest experiences and driving operational excellence, aligns perfectly with Wanna.com’s vision of delivering unparalleled daily fantasy sports entertainment to users nationwide and internationally.
“We are thrilled to welcome Chuck Bowling to the Wanna.com Board of Directors. Chuck’s remarkable track record in the gaming and hospitality industry will be invaluable as we navigate the complexities of our launch and beyond. His strategic acumen and commitment to excellence resonate deeply with our mission to revolutionize the daily fantasy sports landscape,” said CEO/Founder of Wanna.com Jim Bob Morris.
Mr. Bowling expressed his enthusiasm for joining the Board, stating, “I am honored to be part of Wanna.com at such a pivotal moment in its journey. The company’s innovative approach to fantasy sports gaming with concepts such as Wanna Parlay, holds great promise, and I am excited to contribute to its success and growth.”
Industry News
Lotto.com Debuts New Digital Scratch Ticket Campaign Led by Havas New York
Online lottery platform Lotto.com has launched a new Digital Scratch ticket campaign with surprising creative developed by Havas New York as the brand’s agency of record.
Lotto.com launched their first-to-market Digital Scratch tickets offering in December 2022, which transformed how traditional paper scratch tickets are played. As Digital Scratch tickets offer customers the opportunity to experience the thrill of playing a physical scratch ticket in a digital, secure setting, the campaign taps the thrill of winning anytime.
As a build to the brand’s first campaign, “Welcome to Winever,” the new Digital Scratch campaign avoids category cliches like CGI fantasy worlds and big spenders, instead capturing traditionally “unlucky” moments, and turning them into winning ones. With this theme at the core of the creative, the campaign highlights unlucky practicalities of life, such as getting your car towed or unexpectedly getting splashed by a taxi driving through a puddle. In each scene, the unlucky scenario is transformed into a lucky one with the ease of a Digital Scratch win on Lotto.com.
“In an often unlucky world, Lotto.com’s Digital Scratch tickets are a reminder that a win could be just a scratch away. Scratch tickets currently make up two-thirds of the $100+ Billion U.S. lottery market and our pioneering Digital Scratch innovation marks a significant milestone for the industry and solidifies our position as a pioneer in the digital lottery space,” Thomas Metzger, CEO of Lotto.com, said.
The fully integrated campaign was led by Havas New York, with paid and earned media support from Havas Village agencies including Republica Havas, Havas Formula, and Havas CX. The creative will roll out across radio, TV, and streaming throughout the month of August, with social media, digital, and out-of-home to follow.
“Lotto.com is spearheading an industry transformation with the introduction of Digital Scratch tickets and we are excited to be a part of it. Unlucky moments are something that all of us can relate to, no matter how big or small. We strive to set our brands apart from competitors by authentically connecting with consumers, and this new creative demonstrates how easy it is to turn even the unluckiest moment into the luckiest one,” Dan Lucey, Chief Creative Officer & Co-CEO of Havas New York, said.
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