President Donald Trump’s aggressive tariff policies have created unprecedented turbulence across the global gaming landscape, affecting everything from traditional casinos to video game manufacturers. What began as targeted trade measures has quickly evolved into a far-reaching economic challenge for gaming companies worldwide, with stock prices plummeting and industry leaders expressing serious concerns about the future.
European and US Gambling Stocks Face Dramatic Declines
The London stock market has been particularly hard hit as investors respond to Trump’s latest round of tariffs targeting Canadian imports and manufacturing inputs from Europe and Asia. The FTSE 100 index plummeted 6% by mid-morning to its lowest level since February 2024. Among gambling companies, William Hill’s parent company Evoke saw shares dip 4% to 38.4p, while Entain (owner of Ladbrokes and Coral) experienced a share price drop exceeding 3% to 485.20p, extending an already turbulent period for the company.
Industry leader Flutter Entertainment wasn’t spared either, with its London Stock Exchange shares declining by more than 4% to 15,398.55p and its US-listed shares closing down over 5% at $206.32
American casino operators faced even steeper drops following Trump’s announcement. Wynn Resorts led the downward spiral with a precipitous 10.62% decline, while Caesars Entertainment closed down 9.52%. Other major players suffering significant losses included Red Rock Resorts (9.43%), MGM Resorts International (9.27%), Golden Entertainment (9.1%), Las Vegas Sands (6.74%), and Boyd Gaming (6.24%).
These market reactions have exacerbated the gambling sector’s existing challenges, including weaker-than-anticipated Q1 performance, soft consumer spending patterns, and disappointing betting margins across multiple operators.
Asian Markets and Gaming Hardware Manufacturers Hit Hard
The impact extends well beyond traditional gambling companies. Japanese video game giants have suffered dramatic stock market plunges following the announcement of a 24% tariff specifically targeting Japan. Nintendo saw its stock fall 7.35%, Sony dropped 10.16%, Capcom declined 7.13%, and Sega decreased 6.57% during the April 7th trading session.
The reciprocal tariffs on Vietnam and Japan have come in higher than expected, and Nintendo will feel the impact of this if the tariffs go into full effect
These declines reflect mounting concerns that the tariffs will force manufacturers to significantly raise prices. Nintendo’s situation is particularly complicated, as the company had previously shifted some Switch 2 manufacturing to Vietnam to avoid potential US tariffs on China – only to have Vietnam also targeted by the new tariff structure.
“The reciprocal tariffs on Vietnam and Japan have come in higher than expected, and Nintendo will feel the impact of this if the tariffs go into full effect,” noted industry analyst Daniel Ahmad. Fans and market watchers now worry that Nintendo will be forced to raise prices for its upcoming Switch 2 console and games, potentially dampening consumer enthusiasm for the highly anticipated new system.
Tabletop Gaming Publishers Sound Alarm Over Manufacturing Costs
The often-overlooked tabletop gaming sector has been particularly vocal about the devastation these tariffs could bring. Industry leaders are warning that increased manufacturing costs will ripple through the entire ecosystem of board games, card games, and role-playing publications.
“These tariffs will damage the gaming sector at nearly every level,” stated Loren Coleman, CEO of Catalyst Game Labs. “Prices will inevitably rise, punishing the gaming community for circumstances beyond their control. Sales will decline, adversely affecting retailers and distributors. Major publishers may need to reduce their workforce and revise their annual strategies.”
Smaller publishers, which are often the source of our industry’s creativity, may scale down operations or even shut down.
The impact on printed materials is especially concerning for an industry that operates on relatively thin margins. “The tax on imports results in increased costs for printed materials,” explained one CEO. “This will impact all new releases and items currently in pre-order or production. If a book isn’t released yet, expect the Manufacturer’s Suggested Retail Price to rise”.
Tourism Decline Threatens Casino Revenue Projections
Las Vegas and other gambling hubs are already seeing worrying signs that tariff-related economic uncertainty is affecting tourism. Harry Reid International Airport welcomed just over 4 million travelers in February 2025, representing a 7.5% year-on-year drop.
This trend aligns with projections from the University of Nevada, Las Vegas (UNLV) Center for Business and Economic Research, which forecasts visitor traffic to decline by 5.8% in 2025 and 6.9% in 2026. These declining visitor numbers are expected to directly impact revenue, with gross gaming revenue projected to drop by 5.4% in 2025 and 4.6% in 2026. Hotel occupancy rates are similarly forecasted to fall by 3.8% in 2024 and an additional 4.4% the following year.
The figures are particularly concerning given that Las Vegas had been steadily rebuilding tourism numbers after the pandemic, welcoming 40.8 million visitors in 2023 – a 5.2% increase from 2022 and approaching the pre-pandemic high of 43 million visitors.
Rising Energy and Manufacturing Costs Create Additional Pressures
Beyond market volatility and tourism concerns, the gaming industry faces mounting operational challenges as tariffs drive up manufacturing and energy costs. The increasing price of electronic components is making gaming machines more expensive to produce, with potential delays in computer chip deliveries negatively impacting both physical slot machines and online gaming platforms.
Land-based casinos, which consume substantial amounts of electricity, face additional pressure from potential energy price hikes. With gambling operators already working with relatively small profit margins, increased utility bills could significantly impact profitability.
For gaming equipment manufacturers, Trump’s intention to introduce a 25% tariff on goods from China, Canada, and Mexico creates serious supply chain complications. Many components and materials are sourced internationally, forcing manufacturers to choose between absorbing costs, raising prices, or restructuring established supply chains.
Regional Impacts and Adaptation Strategies
While the overall outlook appears challenging, some industry representatives suggest that certain regions might benefit from changing consumer behavior. Mark Giannantonio, president of the Casino Association of New Jersey, expressed cautious optimism that Atlantic City could potentially attract more domestic visitors seeking value-oriented gaming destinations.
“I think a lot of people will consider Atlantic City because it is close as a destination. We’re really perceived as a value,” Giannantonio noted. This perspective suggests regional casinos might adapt their marketing to target domestic travelers who are now hesitant to venture internationally.
However, this potential bright spot comes with significant caveats. Atlantic City’s history offers cautionary lessons about overreliance on domestic markets. Trump himself famously owned multiple Atlantic City casinos that ultimately went bankrupt, largely due to market decentralization that diverted players elsewhere1.
For international casinos, particularly those in Macau, the situation is even more concerning, with Hong Kong-listed stocks dropping by double digits. These declines reflect fears that reduced disposable income among American tourists, combined with potential retaliatory measures from affected countries, could dramatically reduce high-value international visitation.
Economic Recession Risks Amplify Industry Concerns
The market turbulence triggered by the tariff announcements has prompted major financial institutions to revise their economic forecasts dramatically. Goldman Sachs now projects a 45% chance of US recession within the next 12 months, up from a previous estimate of 35%. Even more concerning, JPMorgan has increased its recession probability to 60% for both US and global economies.
These recession projections compound challenges for the gaming industry, which historically experiences amplified effects during economic downturns. Discretionary entertainment spending is typically among the first categories consumers reduce when financial uncertainty rises.
The crypto industry has similarly been affected, with Bitcoin dropping to the $75,000 level, which is a concern for those with crypto investments or for those active on bitcoin gaming sites.
The Trump administration has indicated no immediate plans to withdraw the tariffs, and further escalation remains possible, especially if trade negotiations with Canada and the EU continue to stall. These factors suggest gaming stocks will likely face continued pressure in the coming months, particularly for operators with significant US exposure or dependencies on international travel.