Gambling stocks tumble due to Trump's tariff plans. What's next?

After Donald Trump's historic victory in the presidential elections, there have been a lot of changes. Recently, the US president has announced the imposition of new tariffs, triggering a global market sell-off and shaking investors' confidence. This fuels fears of a global trade war, including surging inflation and an economic slowdown.

Not only was the stock market affected, but there is much more on the line too.

Casinos take a knock

Casino and gambling stocks were not untouched by the market carnage, with several key players experiencing double-digit losses. US-based gambling stocks also took a hit, with Wynn Resorts experiencing a 13.50% drop, followed by PENN Entertainment, which fell 13.34%.

Las Vegas Sands lost 11.01%, and MGM Resorts International saw a drop of 9.59%. London-listed Evoke PLC experienced the largest losses, with its stock declining by 20.15%, while Entain's shares dropped 16.04%. Better Collective suffered a 15.39% loss. Other US companies, such as DraftKings and Caesars Entertainment, were also affected, with losses of 6.74% and 7.43%, respectively.

It is no surprise that Asian gambling companies were also impacted by the market shakeup. Sands China dropped by more than 17%, and Galaxy Entertainment Group lost 16%.

Rolling the recession dice

There have been predictions that a US and global recession is likely, with a 60% chance following Trump's tariff announcement. Goldman Sachs has also raised the likelihood of a US recession to 45% within the next 12 months. According to analysts, the new US tariffs could have a significant impact on the global gambling market as a whole.

All this means that investing in the stock market now carries more risk and needs even better research and preparation.

The tariffs are the biggest structural shift in the global economy since 1990. The rising costs due to the tariffs could reduce US consumer spending, including spending money on activities like gambling. If wages stagnate and living costs rise, the average consumer will have less disposable income, causing a shift from land-based casinos to online gambling.

Amid all this, the broader geopolitical context is also intensifying. The States' trade tensions with China have entered a new phase, with Beijing issuing a warning about countermeasures. This has also brought interesting developments to a number of different industries. For instance, Chinese manufacturers are now promoting products (especially luxury goods) as ones that are made locally.

Some claims may be false. However, others' evident credibility causes the “Made in China” branding to counter the perception of economic weakness. These narratives certainly complicate the already volatile landscape even further. So, let's explore some predictions of what we could expect:

Relaxed rules or rising risk?

The gambling industry is mainly influenced by regulation, and the approach Trump uses to control the market may involve relaxing certain regulations and encouraging more competition within the sector.

Regulated US gambling markets might experience an increase in revenue. The online sector could benefit from more lenient policies, allowing for greater market and business growth. However, this may also take a negative turn.

Trump's renewed focus on economic nationalism could include re-evaluating existing US gambling regulations, especially if offshore operators are seen as a threat. The markets in Europe and Asia may not feel the direct impact, but global economic slowdowns have a domino effect. Countries dependent on US trade could also face recession, weakening their gambling revenues.

By implementing policies that support the legal expansion of online casinos, Trump would create jobs and generate state tax revenue by establishing conditions that benefit these modern digital platforms. He may also advocate for nationwide sports betting legislation based on federal standards, including standardising state-by-state regulations for a streamlined industry and improved player safeguarding.

Reviewing the Unlawful Internet Gambling Enforcement Act (UIGEA) could establish new methods for streamlined online payment solutions using emerging financial systems. These proposed measures embrace a business-friendly deregulation approach to using technological advancements to develop the digital gambling environment.

Trump’s crypto revolution

The crypto market thrives on two main things: uncertainty and decentralisation. Many turn to Bitcoin as a hedge when the traditional financial market takes a hit. In a landmark move, President Trump signed an executive order establishing the Strategic Bitcoin Reserve.

Well, Trump's ambitious vision of placing America as the global center for crypto innovation is underway, as he hosted the first-ever White House Crypto Summit in 2025, which attracted prominent industry leaders. The tariffs and the fear of a trade war could potentially push Bitcoin prices higher, as many investors will seek safe havens.

Trump appointed David Sacks as the Crypto and AI Czar, who will oversee the President’s Working Group on Digital Asset Markets. Sacks will address the long-standing complaints from the crypto community about unclear regulations.

The Trump administration has promoted domestic Bitcoin mining operations, emphasising energy independence and economic growth. New incentives and reduced regulatory hurdles have spurred significant investment, revitalising mining operations in states with abundant renewable energy resources.

Trump’s second administration undeniably reshaped the US cryptocurrency landscape, delivering significant policy victories and fulfilling campaign promises. However, the achievements have been clouded by controversies surrounding conflicts of interest, weakened regulatory oversight, and some ethical dilemmas.

High stakes ahead

Looking ahead, we can make a few realistic predictions if the current trends continue.

• Increased regulation across the board as governments may start to push harder on crypto oversight and gambling compliance to protect the consumer.
• There might be a boom in the offshore gambling market as the local markets tighten. Players may go to international casinos, potentially bypassing regulations and taxes.
• With the weakening confidence in the USD, some platforms might boost Bitcoin and crypto payment options to attract global users.
• There might be a rise in political gambling as Trump’s presence in the headlines could lead to a surge in novelty or political betting markets.

Suppose you are a crypto investor, a gambling operator, or just watching everything unfold. Trump's economic moves are a reminder of how interconnected global systems really are. The gambling industry, including crypto casinos, must adapt to the shifts and anticipate the regulatory and financial tremors ahead.