US Tariffs Deal Heavy Blow to International Casino Operators
The global gambling industry is feeling the effects of rising trade tensions with escalating tariffs causing market volatility and consumer uncertainty.
LISTEN TO THIS ARTICLE:Both Asian and Western gaming operators have suffered financial setbacks, with the new US trade measures introduced by the Trump administration triggering economic concerns and impacting investor confidence worldwide.
Related: 2024 Presidential Election’s Role in Defining America’s Gambling Landscape
Macau Hit by US-China Tensions
Following President Donald Trump's decision to impose a 34% tariff on Chinese imports, on top of 10% tariffs introduced in February and March, China quickly retaliated with an identical 34% duty on US goods, effective from April 10. As tensions grew, President Trump upped the ante by threatening an additional 50% tariff on Chinese imports, which has prompted fears of a full-scale trade war.
The repercussions were quickly seen in gambling stocks, particularly those tied to Macau. On April 7, shares in several leading Hong Kong-listed operators dropped. SJM Holdings fell 18%, Melco International dropped 16%, and Galaxy Entertainment tumbled 12.44%, in what was the steepest stock market slide since the 1997 Asian financial crisis.
US-based companies with major operations in Macau also felt the impact of Donald Trump’s new tariffs, Sands China lost 14%, Wynn Macau 13%, and MGM China Holdings fell nearly 12%.
London-Listed Companies Also Suffering
The same could be seen around the world. In London, gambling companies were hit as the FTSE 100 fell 6% to its lowest since February 2024. Shares of Entain, which owns Ladbrokes and Coral, dropped by over 3%, while William Hill’s parent company Evoke saw a 4% fall. Flutter Entertainment’s London-listed shares fell 4%, and its US-listed stocks closed down more than 5%.
The gambling industry’s vulnerability is not only due to market instability but also because of wider economic challenges. Many operators are already struggling following underwhelming first-quarter performance, slow consumer spending, and weaker betting margins. The added layer of tariff-induced uncertainty compounds these difficulties.
Tourism, which is a lifeline for many gambling hubs, is also under threat. Las Vegas reported a 7.5% year-over-year decline in visitors at Harry Reid International Airport in February 2025, with reduced travel from tariff-impacted countries playing a role.
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Optimism in Atlantic City
However, while many major resorts are suffering, some US gaming destinations are finding opportunity in the disruption. Mark Giannantonio, president of the Casino Association of New Jersey, suggested that Atlantic City could see a boost as domestic travelers opt for nearby, cost-effective alternatives.
I think a lot of people will consider Atlantic City because it is close as a destination. We’re really perceived as a value.
Furthermore, some analysts, such as like Morningstar’s Dan Wasiolek, believe that US gaming firms in Macau come out the other side with relatively little damage due to China’s desire for Macau to remain a world destination resort, which will require the expertise of American companies such as Las Vegas Sands, MGM Resorts and Wynn Resorts.
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