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Casino and gaming stocks dropped sharply following President Donald Trump’s announcement of new tariffs on most international imports. The tariffs triggered immediate concern among investors, with losses seen across both land-based and online gambling companies.
Wynn Resorts led the decline with an 11% drop Thursday. PENN Entertainment fell 10%, and Caesars lost about 9.5%. The broader market also fell hard. The S&P 500 dropped 5%, while the Nasdaq slipped 6%, both experiencing their worst trading days since March 2020.
By the end of trading Friday, most gaming stocks had not recovered and were still down from where they stood before the tariff news. They moved mostly sideways the day after, showing no signs of a quick rebound.
Investors are worried the tariffs could drive up prices on imported goods, which would leave consumers with less spending money. That would hit the gaming industry hard, especially land-based casinos that depend on international supplies for operations, from slot parts to food and beverage.
Wynn, which earns much of its revenue from Macau, saw a steeper decline than MGM, which has more U.S. exposure and was down 9%. Las Vegas Sands dropped 7%, despite not operating in the U.S.
Domestically focused operators also lost ground. Caesars dropped 9.5%, and PENN Entertainment fell 10%. Red Rock Resorts declined 9.5%, and Boyd Gaming ended Thursday down 6%.
Online betting firms performed slightly better. Flutter Entertainment, the parent of FanDuel, dropped 5%, while DraftKings fell 6%. Rush Street Interactive, which runs BetRivers, also fell 5%.
The tariffs are expected to raise costs for both physical and digital operators. While digital platforms avoid many of the supply issues, they still face reduced consumer spending due to inflationary pressure.
Trump has said the tariffs will create U.S. jobs and attract investment, but for now, the gaming sector is adjusting to rising costs and uncertain demand.