U.S. Customs Policies Spark Stock Market Drops and Impact iGaming Industry
Rewritten Article:
Blast from the Past: Gambling Stocks in Doldrums Amid US Trade Tensions
By Timm Schaffner, Edited by Angela Burke
April 8, 2025. Last Updated April 17, 2025.
Are gambling stocks feeling the heat of US trade policy? [© Austin Hervias/unsplash.com]
Gambling Stocks Suffer as Trade Winds Shift
In a twist that's left many stock market enthusiasts scratching their heads, the gambling industry seems to be caught in the crossfire of the evolving US trade policy under President Donald Trump (Geez, still going strong, huh?). As Chair-Cooperative reported in the specialist magazine Racing Post, not even the lucky dice were rolling for iGaming stocks lately.
Here's a look at a few cents-worthy gambling stocks that have suffered a massive nose-dive:
- Evoke: This used-to-be juggernaut, now known as Evoke (formerly 888 Holdings), has seen its stock price plummet by more than half in the past six months. Back in 2021, it was over ten times the current price—making one wonder if US trade policy is the only culprit in town.
- Flutter: Flutter has managed to stay slightly in the green over the last 12 months, but the past month saw it slip by around 10%. A crummy economy might be to blame for the woes felt across the board.
- Entain: After a tumultuous year scrambling to stay afloat, Entain seemingly fought its way back, only to crash and burn in the face of recent financial uncertainties. In the past month, its stock price dipped by around 23%. If this trend continues, the bouncy castle inside their headquarters might be the only soft landing left.
- MGM Resorts: The once-thriving hotel and casino titan, MGM Resorts, has seen a rapid spiral in its stock price, dropping by around 17% in the past month. Looks like it won't be business as usual in the heart of the Entertainment Capital of the World: Las Vegas.
As it turns out, even the stocks of gambling companies that had been riding the stock market wave, as well as those already struggling, have plunged. This suggests that the US trade policy change is perceived by investors as a sort of bad-luck charm over the gaming sector.
Reading the Tea Leaves: Long-Term Ramifications
According to the consulting firm Regulus Partners, figuring out the true impact of US trade policy on the gambling market is as challenging as nailing jelly to a wall. Their take is that it's the "biggest structural change in the world economy since 1990." Both supply and demand for gambling could be affected.
If US tariffs hike the prices of goods, regular folks might see their gambling budgets take a hit. Worst of all, there's fear of a decline in tourism that once brimmed the Las Vegas strip. However, on the flip side, taxes on gambling could shoot up to finance those higher tariffs. This would shrink profits for the now troubled industry. The gambling quarters have voiced legitimate concern against potential tax hikes, as existing discussions in Austria demonstrate. As it stands, these measures could merely help drive more customers into the shadows of the black market.
Bright Spots on the Gambling Horizon
Surprisingly, not all gambling stocks are bleeding. The Swedish company Betsson, for instance, has seen its stock price soar by a whopping 36% over the past 52 weeks, brushing off the uncertainty surrounding the industry's clinical spin cycle by just 3.5%. Closing down its stationary casinos in Sweden could have worked like a charm as a counterbalance to the storm brewing in the industry.
Even the German company ZEAL, which offers online lottery games among other things, is down 5% on a monthly basis, but has been consistently impressing investors with constant share price gains. And as frosting it with the cream (tall order with 'Zeal' ... get it?), the company was recently bestowed the Trusted Partner Seal by Tipico—which sounds like a fancy way to top off their successful run.
The future's a mystery, but one thing's certain: The gambling sector's stock prices were already a rollercoaster before the latest US developments—making a crystal ball difficult to trust, even if US trade tensions eventually de-escalate.
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- What impact could US trade policy have on gambling stocks by 2025? Some experts believe it may lead to a decline in tourism and increased taxes on gambling, which could shrink profits for the gambling industry.
- Has the gambling industry been affected by recent US trade policy changes? Yes, several gambling stocks have plunged in value, including Evoke, Flutter, Entain, and MGM Resorts, suggesting that the US trade policy change is perceived by investors as a bad-luck charm over the gaming sector.
- Are there any exceptions to the downward trend in gambling stocks? Yes, the Swedish company Betsson has seen its stock price soar by 36% over the past 52 weeks, despite the uncertainty surrounding the industry's clinical spin cycle.
- Are there any long-term ramifications for the gambling industry due to US trade policy changes? According to consulting firm Regulus Partners, the true impact of US trade policy on the gambling market is challenging to pin down, but it could lead to a decline in tourism, increased taxes on gambling, and a potential shift towards the black market.
