Gambling is often considered “recession-proof” due to its consistent demand and adaptability, even during economic downturns. This makes VGTs and slots an attractive option for entrepreneurs and business owners looking for new revenue streams even during times of uncertainty, as we are currently experiencing.
While not entirely immune, the gambling industry has demonstrated resilience during past recessions.
In the 2001 recession, the U.S. commercial casino industry experienced a slight revenue increase of 0.8%, showcasing its stability during mild economic contractions, according to a 2024 study.
During the Great Recession (2008–2009), the industry faced a more significant impact, with revenues declining from $37.5 billion in 2007 to $32.5 billion in 2009—a 13% drop. However, the gaming industry fared better than most, and the sector rebounded quickly in subsequent years, highlighting its capacity for recovery.
Here is why the gaming industry continues to provide a reliable revenue stream for business owners during times of economic volatility.
Looking for a business opportunity with steady revenue? Contact us today. We can help you every step of the way, from licensing to revenue generation.
Consistent Demand for Affordable Entertainment
During economic hardships, individuals often seek low-cost entertainment options. Gambling, such as lotteries and low-stakes betting entertainment such as VGTs, provides an accessible and affordable escape. For instance, lottery sales have historically remained stable or even increased during recessions, indicating its resilience as a form of entertainment.
Government Support and Tax Revenue
Governments often rely on gambling revenues for funding, especially during fiscal shortfalls. In 2022, the U.S. casino industry generated $52.7 billion in taxes for federal, state, and local governments. This substantial contribution underscores the industry’s role in supporting public finances, making it a focal point for policy support during economic challenges.
Psychological Factors Driving Participation
Economic stress can lead individuals to seek quick financial relief, one of the consistent draws of gaming. The allure of a significant win for a minimal investment becomes more enticing during tough times.
Economic Impact and Employment
Beyond direct revenues, the gambling industry contributes significantly to the broader economy. In 2022, it supported 1.8 million jobs and generated $329 billion in economic activity in the U.S. This extensive economic footprint reinforces its stability and importance, even during economic downturns.
Finding Calm (and Opportunity) In The Storm
Gambling’s combination of consistent demand, government support and reliance on tax revenues, psychological appeal during financial stress, and substantial economic contributions underpin its reputation as a recession-resistant industry. While not entirely fool-proof, recent history suggests that entrepreneurs, bar and restaurant owners, and other business owners can feel comfortable that even during hard times, gaming can provide a reliable source of income.
If you would like to talk about setting up a gaming business, or making sure your existing business is generating as much revenue as possible, please contact us. As the first Terminal Operator to install VGTs in Illinois, Universal Gaming Group offers businesses the most experienced partner in the industry. We’re always here to help your business thrive, in any economy.
