Moody’s changes outlook for US gaming to stable as industry eyes Q3 recovery

Moody’s Investors Service has improved the outlook for US gaming from negative to stable amid optimism for a 2021 recovery.

Moody’s expects EBITDA to rebound in Q3 and predicts 45% year-on-year improvement in 2021. 

Adam McLaren, a Moody’s Vice President and Senior Analyst, said, “The stable outlook for the US gaming industry reflects our expectations of casinos’ road to recovery over the next 12 to 18 months. While the industry is facing high hurdles for a return to normal, we expect much of the second quarter decline was recouped in the third quarter, and that the EBITDA growth starting in Q4 2020 will be within the +/-5% range, consistent with our parameters for a stable outlook.”

Keith Foley, a Moody’s Senior Vice President, added, “However, ongoing capacity constraints will limit revenue growth. Monthly gross gaming revenue remains well short of where it was in prior comparable periods and is not likely to improve much further until capacity constraints are lifted. Additionally, as the pandemic continues with no sign of abating anytime soon, the industry remains vulnerable to the risk of more severe restrictions along with future closings.”

Ezra Amacher

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