Global stock markets have entered a period of intense volatility, with gambling companies among the hardest hit. The turbulence began after President Donald Trump announced sweeping new tariffs, sparking fears of a global trade war, inflation, and a potential economic slowdown.
Major indices suffered heavy losses: the S&P 500 dropped over 8%, Nasdaq nearly 9%, and the FTSE 100 fell more than 10%. European and Asian markets fared even worse, with the DAX and STOXX Europe 600 down nearly 13%, and Hong Kong’s Hang Seng plunging by 14.5%.
Gambling stocks took a sharp blow. UK-listed evoke plc lost over 20% in just five days, while Entain fell by 16%. Better Collective in the affiliate sector saw a 15% drop. In the US, Wynn Resorts and PENN Entertainment both lost over 13%, while Las Vegas Sands and MGM Resorts declined by 11% and 9.5%, respectively. DraftKings and Caesars Entertainment also saw notable losses.
Asian gaming firms didn’t escape the downturn either. Sands China dropped more than 17%, and Galaxy Entertainment fell by 16%.
With recession fears rising—JP Morgan puts the odds at 60%—the focus turns to what comes next. Analysts at Regulus Partners suggest that tariffs could significantly impact consumer spending, reducing visits to land-based casinos but possibly boosting demand for online gambling as a lower-cost alternative.
They also point out that state-by-state online gambling regulation in the US might accelerate as governments search for new tax revenues. However, the economic disruption from tariffs could hit emerging markets hard, particularly those in Asia and South America reliant on exports to the US.
While online gambling may benefit in some regions, Regulus warns that in countries with economic instability, like Argentina or Venezuela, the risks may outweigh the benefits. The full impact of these tariffs on the global gambling sector could be deeper and more complex than a standard economic slowdown.