Gaming Industry Uncertain as Tariffs Impact Financial Markets

By John Isaac,
Editor at online-gambling.com

John Isaac Editor at online-gambling.com

John Isaac is an editor with many years of experience in the gambling industry. He writes expert articles on card games like blackjack and poker. In addition, he is also well aware of the US gambling laws and the Indian and Dutch gambling markets. You can rely on verified information and insightful details.

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Last updated: April 26, 2025

Financial markets have been on a rollercoaster recently, driven largely by President Donald Trump’s fluctuating tariff policies. The sharp ups and downs have already impacted the gaming industry, which is tightly connected to economic oscillations.

How Tariffs Impact Gaming Stocks

On April 2, Trump introduced expansive tariff policies impacting US trade partners. Trump referred to the historic move as a “declaration of economic independence” and included a 10% tariff on all imports and heftier reciprocal tariffs targeting specific countries.

Immediate reactions sent global markets into freefall, erasing trillions in value. Major indices like the S&P 500, Dow Jones, and Nasdaq suffered consecutive 5% declines, marking the worst week since the COVID-19 pandemic’s onset in 2020.

Retail giants such as Wynn Resorts and MGM Resorts saw their shares decrease by more than 10%. Suppliers’ stock values also slid, struggling with disrupted supply chains. Even online companies, typically more insulated, saw declines of about 5%.

Yet, the market took an unexpected turn when, on April 9, Trump paused these reciprocal tariffs for 90 days, excluding China. The pause sparked one of the most significant single-day market recoveries in history. Nasdaq rose by 12%, while the Dow and S&P climbed back 8% and 9.5%, respectively. However, the optimistic prognosis didn’t last long, as most major indices dropped again by 2.5% on April 10.

Stakeholders’ Concern

Economic shifts have always influenced the gaming industry. The most recent example is the COVID-19 pandemic, during which many retail casinos had to close their premises for the first time. According to the American Gaming Association (AGA), the global supply chain might impact the current market.

Joe Maloney, AGA’s senior vice president, commented, “We are actively monitoring developments and are engaged with multiple stakeholders in advocating for continued dialogue with key trade partners that enable the economic growth and impact our industry provides in communities across the US.”

In the meantime, the Association of Gaming Equipment Manufacturers (AGEM) didn’t comment. The association comprises 12 international gaming suppliers and publishes a monthly index of its members’ stock performances. The AGEM index showed a 9.3% decline year-on-year in March.

Predictions Are Uncertain, Digital Companies Might Have Future Prospects

Even with market fluctuations, analysts find it challenging to predict near-term equity movements. Lloyd Danzig of Sharp Alpha Advisors noted the unpredictability of current market conditions.

Digital gaming platforms may find a silver lining. During the COVID pandemic, online betting and gaming made a profit as many started playing from home. A similar trend could happen now as digital markets continue to expand. Some believe small online bets could be more resilient to economic swings than traditional casino visits.

Frank Fantini, principal of Fantini Advisors, has analyzed gaming markets in the last two decades. He pointed out another potential threat – grey markets. Platforms like sweepstakes and prediction markets evade standard regulations and continue growing, which poses challenges for traditional gaming operators.

As Fantini suggested, regional casinos better withstand recession-style environments than destinations like Las Vegas because they rely less on conventions and lavish spending. However, tariffs may invoke emotional responses, discouraging travel from countries like Canada.