Summary:
- Stocks of digital-first gaming companies declined less than those of traditional casino operators.
- Companies with heavy international operations were hit the hardest.
- Investors confident in U.S.-based operators with an online focus.
President Donald Trump’s announcement regarding new tariffs on foreign goods has started to ripple through the stock market.
As expected, casino operators are already feeling the pressure, but, apparently, the fallout hasn’t been evenly spread.
While the industry as a whole has taken a step back, online-focused gaming casinos are proving more resilient than their land-based counterparts, especially those with large international footprints.
Namely, since the official announcement on April 2, investors have shown a clear preference for U.S.-focused, digital-first gaming companies.
Land Operators Taking the Biggest Hits
Stocks of online operators like DraftKings, FanDuel, and Rush Street Interactive have taken smaller hits than those of their brick-and-mortar-heavy competitors, who are more vulnerable to rising import costs and global market volatility.
While most gaming stocks have dipped, online-first platforms have managed to weather the storm better.
Rush Street Interactive, which runs BetRivers and has a strong presence in Latin America, has seen its stock drop around 4% since April 1.
That’s the smallest decline among major gaming stocks. DraftKings and FanDuel, both key players in the U.S. digital market but without physical casinos, have seen their shares fall by 5% and 6%, respectively.
These companies are perceived as safer bets largely because they are not heavily reliant on imported equipment or global tourism. Meanwhile, companies with deep roots in the brick-and-mortar casino industry are feeling the heat.
Caesars, which has a large presence on the Las Vegas Strip and in regional markets, has dropped 6%.
Boyd Gaming and Red Rock Resorts, which operate local casinos around Nevada, are down 8% and 10%, respectively.
These businesses are not only facing higher operating costs because of the tariffs but are also getting ready for a potential dip in tourism and consumer spending.
International Companies Taking a Bigger Toll
Internationally focused giants have fared even worse.
Despite its strong U.S. presence, MGM’s stock has dropped 14%, mostly due to its heavy investment in Macau.
Las Vegas Sands, which has no U.S. assets, is down 20%, while Wynn Resorts, which has just three American properties, has fallen 21%.
The takeaway is that the market is signaling a clear preference: either stick with digital operators or those focused squarely on the U.S.
Overall, the important market-wide drops show that the fresh tariffs will affect all gaming entities and the global economy.
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