Amusement Parks and Arcades
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 3,300 amusement parks and arcades in the US offer a variety of rides, games, or other attractions for entertainment purposes. Amusement parks include theme parks, water parks, boardwalks, and piers, which offer a variety of rides, shows, restaurants, and retail shops. Arcade operators include electronic game arcades, family fun centers, indoor play areas, pinball arcades, and video game arcades.
Seasonality and the Weather
The amusement park industry is highly seasonal and subject to uneven cash flow.
Capital Intensity of Development
Amusement park operations are highly capital-intensive, with firms investing millions to develop, upgrade, and expand facilities.
Industry size & Structure
The average amusement park establishment employs 270 workers, and generates $51 million annually, while the average arcade establishment employs about 15 workers, and generates $1.9 million annually.
- The amusement park industry includes about 500 firms that employ about 136,000 workers and generate about $25.7 billion annually. The arcade industry includes about 2,800 firms that employ over 42,760 workers and generate $5.3 billion annually.
- The amusement park industry is concentrated; the top 50 companies account for 97% of industry revenue. The arcade industry is more fragmented; the top 50 companies account for 56% of industry revenue.
- Large domestic amusement park operators include Walt Disney Co., United Parks & Resorts (SeaWorld, Busch Gardens), Universal Destinations & Experiences, and Six Flags Entertainment (Six Flags, Cedar Point). Large firms may have operations in foreign countries. The arcade industry consists mainly of independent operators. Dave & Busters is a large firm with arcade operations.
- The most-visited theme parks in the US include the Magic Kingdom, Disneyland, Disney’s Animal Kingdom, EPCOT, Disney’s Hollywood Studios, and Universal Studios.
Industry Forecast
Amusement Parks and Arcades Industry Growth
Recent Developments
Feb 24, 2025 - Inflation Flat, Employment Higher
- Producer inflation for amusement and theme parks was flat in December 2024 year over year, according to producer price index data from the US Bureau of Labor Statistics. Employment and wages were up in December 2024 year over year, increasing 1.2% and 5.4%, respectively. Leading industry indicators showed improvement in November 2024, with consumer spending up 2.9% compared to a year ago, according to the Bureau of Economic Analysis. According to the Consumer Price Index, prices for recreation services including leisure and entertainment activities were up 3.8% in January 2025 year over year.
- According to a report in The New York Times, Universal has announced a number of new projects in new markets as it seeks to compete more effectively with entertainment and theme park powerhouse Disney. Universal’s expansion plans include projects in Dallas, Las Vegas, Los Angeles, Britain, and a new theme park development in Orlando. The company’s project in Las Vegas is called Universal Horror Unleashed, and will hold four haunted houses themed to movies like “The Texas Chainsaw Massacre” and “The Exorcist: Believer.” Universal’s Kid Resort project near Dallas is aimed at children ages 3 to 8 and will feature rides and play areas tied to movies like “Shrek,” “Trolls,” and “Minions.” The 32-acre “starter” park is expected to open in 2026. The company has several projects planned to open in 2025. Its Fan Fest Nights events in Los Angeles at Universal Studios Hollywood will begin in April 2025, and its new Epic Universe development slated to open in May 2025 in Orlando will be a 750-acre theme park with three hotels.
- Amusement parks and arcades may find fewer customers if lower consumer confidence levels continue, with consumer confidence levels dropping by 5.4 points in January 2025 from the previous month, according to The Conference Board. The Consumer Confidence Index was 104.1 in January 2025 from 109.5 in December 2024. Dana Peterson, chief economist at The Conference Board, noted that the segment with the highest gains in confidence were those at the bottom of the income range while households earning over $125,000 showed the sharpest decline in confidence. Per Peterson, “Consumer confidence has been moving sideways in a relatively stable, narrow range since 2022. January was no exception. The Index weakened for a second straight month, but still remained in that range, even if in the lower part.” Purchasing plans for homes and new cars were flat while big-ticket purchases rose on a six-month moving average basis.
- Dave & Busters is making several changes to align for future growth, with Latin American stores planned for 2025, according to Chain Store Age. The company plans to open its first location in Mexico planned for Mexico City by the end of 2025 through a partnership with Winclub Mexico. The company plans 10 locations across cities in Mexico. In other company news, Dave & Busters announced its CEO Chris Morris stepped down in December 2024, replaced by company Chairman Kevin Sheehan who will serve as interim CEO. The company’s third quarter earnings report, released in December, showed a 7.7% decrease in same-store sales due in part to lower demand from low-income consumers as well as stores closed for remodeling.
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