Trump Tariffs Create Challenges and Expansion Opportunities for Gaming Industry, Experts Say

^{The Hard Rock in Atlantic City was the cite of last week’s East Coast Gaming Conference, where industry experts addressed economic realities related to tariff uncertainties. (Image: Alamy)}

The East Coast Gaming Congress, one of the largest gambling conferences in the United States, began at the Hard Rock Hotel & Casino in Atlantic City on Tuesday, and the global trade war was on the mind of many in attendance.

A panel featuring Wall Street and gaming industry experts discussed how the economic moves made by President Donald Trump could impact the world of gambling, for both good and ill.

Uncertainty, Anti-US Sentiment Worry Gaming Experts

The downside risks were easier to see for many in attendance. The changing US policy governing tariffs on goods from China and other foreign countries has passed uncertainty onto casinos, just as it has for many other businesses. 

“If there’s one thing that markets don’t like, it’s volatility and uncertainty,” Cameron McKnight of Capitol One Securities said during the panel. 

Another issue is the downturn in foreign tourists visiting the United States. Panelists attributed that to negative attitudes towards the US, mixed with the same uncertainty that businesses are acing.

“The US has changed the way it is perceived internationally, and people aren’t coming,” Michael Wagman, president and managing director of Toronto’s Clairvest Group, said during the panel. “Travel is down. People are confused. They’re a little bit annoyed.”

Lack of Federal Aid Could Lead States to Turn to Online Gambling

However, another aspect of Trump’s agenda could provide opportunities for expansion in the gaming industry. The administration’s planned cuts to the federal budget necessarily include cutting aid to individual states. That, combined with other potential economic distress for businesses and individuals, could lead to big holes in state budgets. That, in turn, could lead those states to turn to online gambling to raise revenue.

“If you’re a legislator, do you want to raise taxes on your constituents?” asked Shawn Fluharty, a Democratic legislature in the West Virginia House of Delegates who serves as president of the National Council of Legislators from Gaming States. “No. You can essentially flip a switch, partner with your brick-and-mortar counterparts, and revenue goes up.”

Panelists also noted that the gaming industry is waiting to see whether the federal government will look to regulate or outlaw prediction markets or sweepstakes gambling. Individual states have begun to work on legislation to reign in online social casino sites and have also taken regulatory interest in prediction sites like Kalshi, while federal lawmakers have discussed how best to approach the growing online sports betting industry.

The East Coast Gaming Congress will wrap up Wednesday, with several leading executives of major gaming firms giving presentations on the second day of the convention. Speakers will include American Gaming Association CEO Bill Miller, Bally’s chair Soo Kim, and Caesars Entertainment CEO Thomas Reeg. Hard Rock International and Seminole Gaming CEO Jim Allen is among the scheduled speakers, and will also receive a lifetime achievement award.

Curious about what free SC coin bonuses are and where you can claim them?