KUALA LUMPUR (Nov 24): Global gaming operating environments are improving, with those geared towards domestic visitation poised to grow in 2022 to reach or exceed pre-pandemic levels, said Fitch Ratings.

In a report titled "2022 Outlook: Global Gaming” released Tuesday (Nov 23), the rating agency said jurisdictions with faster vaccination rollouts and "living with the coronavirus" mentalities, like the United States, are experiencing stronger recoveries than those that rely on international visitation.

It said regulatory uncertainty will be a key global theme in 2022.

Fitch said that in Macau, concessions expire in June and uncertainty remains on the concession rebidding process, and future regulatory and operating structure.

“For Australia, licence suitability is still overhanging both major operators.

“Restrictions on digital gaming, such as bet size and loss limits, are expected to continue in Europe.

“However, European operators have a better ability to absorb these regulatory headwinds, compared with Australian/Macau operators, who will face more limited options stemming from any adverse licensing outcomes,” it said.

Most Fitch-rated gaming issuers have been taken off Negative Outlook given their strong domestic recoveries.

Negative outlooks are still prevalent in Asia-Pacific, particularly those more reliant on international visitation.

Fitch said stabilised outlooks are most common for domestic operators and digital operators that have seen cash flows fully recover, though shareholder return initiatives have come back into focus.

“Some gaming suppliers are focusing on strategic divestitures to de-lever, such as International Game Technology and Scientific Games Corp, which could result in future positive credit profile momentum,” it said.