Fitch Ratings has released its 2024 global gaming outlook, marking the second consecutive year it has labeled the industry’s prospects as “neutral.”
The report attributes this neutral stance to a slight pullback in the United States, stemming from a decrease in pent-up demand following a robust 2022.
Despite this dip, the US gaming market continues to perform well overall.
However, Fitch’s report, published on December 6, reveals that regional gaming is showing signs of stagnation.
In contrast, Asia Pacific is thriving, thanks to improved demand as the mass market rebounds after the Covid-19 pandemic. Singapore, in particular, is exceeding expectations in its performance.
The Middle East and Africa are experiencing the benefits of limited regulation, while the rise in online gambling profitability in the US is proving advantageous.
In Europe, the UK Gambling Act review is expected to be implemented over the medium term, providing relief from lingering regulatory concerns for EMEA companies focused on the UK.
Fitch also anticipates significant growth in Macau in 2024, as visitation continues to rise despite economic challenges in China.
Gambling revenue in Macau reached MOP$16.04 billion in November, the fourth-highest monthly total in 2023.
This year-on-year growth is attributed to the relaxation of Covid-19-related restrictions.
Leading casino operator Melco Resorts & Entertainment reported a substantial revenue increase in Q3, driven primarily by casino revenue.
However, Fitch’s outlook for Las Vegas is less optimistic, with concerns about a potential decline in 2024.
Although the city broke numerous revenue records this year, the report points to the slowing of pent-up demand as a possible issue.
Additionally, a shift in the customer mix towards non-gaming patrons could pose challenges.
BetMGM, a prominent Las Vegas operator, has set ambitious goals for 2026, aiming to achieve $500 million in positive EBITDA and a 25% market share in the US.
While BetMGM is optimistic about its Q3 results, Goldman Sachs highlights the operator’s current stagnation.
In Q3, Entain reported that BetMGM held an 18% market share in the US, on par with Q2 and only slightly ahead of Q1’s 17%.