Two weeks ago, Hard Rock International Chairman Jim Allen warned investors that inflation and high gas prices could throw a wrench into the industry’s recovery since the end of pandemic shutdowns two years ago. The research head of the American Gaming Association, however, sounded a more optimistic tone last week in an interview with Howard Stutz of the Nevada Independent.
David Forman, vice president of research or the American Gaming Association, told the newspaper that the recovery is for real, and not just a “bubble” that will soon burst, as many fear.
“I don’t think it’s fair to characterize it as a bubble,” Forman said. “The growth has been pretty broad. There are new markets that have gone from zero to where they are now and there are existing markets that just keep growing. I think it’s a healthy expansion of the overall market.”
Tom Reeg, CEO of Caesars Entertainment, sounded a similar tone, noting in a May 3 conference call that room bookings and convention space reservations have not slowed.
“We’ve been living with inflation or witnessed significant inflation for about a year now,” Reeg said, according to the Independent. “We’ve seen no real impact on gaming spend. We just reported a quarter where (gross domestic product) was down and the business of casinos, in particular, held up quite well.”
