Gambling stocks have not been immune as the markets plummeted again on Monday due to fears of the economic consequences of the United States’ new tariffs.
In London the FTSE100 index was down six per cent in early trading, taking it to its lowest level since February 2024 as a result of President Trump’s tariff policy, before recovering to be 4.64 per cent lower by the close.
Share prices for the major gambling operators reflected that fall. William Hill parent company Evoke’s share price was down 4.04 per cent to 38.38p at close of business, while Ladbrokes and Coral owner Entain’s share price fell to 466.2p half an hour after opening this morning, but recovered to close up 4.39p at 505.6p.
Flutter Entertainment, the parent company of Paddy Power, Sky Bet and Betfair, has a secondary stock market listing in London where its shares were down more than four per cent in the morning, but it too recovered to close up 0.47 per cent at 16,160p.
The company’s main listing is in New York where its share price was up more than two per cent to $211.07 on Monday afternoon.
The latest economic shock has exacerbated more long-term falls in the share prices of those major gambling operators.
Evoke’s share price has fallen by 45 per cent since the company unveiled its annual results at the end of March when it revealed there had been a slower-than-expected start to 2025.
Flutter’s share price in New York touched $299 on February 14 since when it has fallen 29 per cent.
Part of that fall has been blamed on a continued run of customer-friendly results, especially in the March Madness college basketball tournament which is the second-largest betting event in the United States after the Super Bowl.
Figures from the New York Gaming Commission for the week ending March 30 released last week showed a record low figure for weekly hold, the amount retained by operators after winnings have been paid out, in the state.
Market concerns over those results will also have impacted Entain, which runs its US joint-venture BetMGM in tandem with casino giant MGM international.
Entain’s share price has also been affected in recent months by continued turbulence, the most recent caused by the abrupt departure of chief executive Gavin Isaacs in February after little more than five months in the role.
Analysts at Regulus Partners described President Trump’s tariff policies as representing “the biggest structural change to the global economy since 1990” and said their impact on global gambling markets was likely to be “profound”.
However, Regulus claimed that tariffs would have a much bigger effect on US gambling supply, rather than demand, for gambling, than it will on the US economy overall.
It was argued that land-based gambling in the US would be hit harder than online gambling by rising costs because of the tariffs. A combination of cost pressure and declining footfall leading to reduced tax income could encourage more states to regulate online gaming as a result.
Regulus also said the impact of US tariffs on economies in Asia and South America could lead those governments to bring in online gambling legislation to raise much-needed tax revenue.
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