April 30, 2025, 10:36h.
Trump's Second 100 Days as President: Impacts on the Gaming Sector
Last updated on: April 30, 2025, 10:56h.
Devin O'Connor @CasinoorgDevinO | Casinos & Gaming | Politics & Legislation | Economy | Tech
On the 100th day of President Donald Trump's second term, let's take a look at how his policies, particularly tariffs, are affecting the gaming industry.
Trump's second tenure in chaos and controversy
President Trump's second term has plunged headfirst into controversy, with a flurry of executive orders, proclamations, and tweets that have ruffled feathers across the political spectrum. Today, on his 100th day in office, it's unclear whether the turbulent start signals a winning streak or a catastrophic failure.
Gaming under Trump's reign
While much of the nation's focus lies on international trade disputes and domestic politics, gaming enthusiasts wonder how the President's policies, particularly tariffs, may impact their favorite pass times. Here's a rundown of how the tariffs might shape up for the video game, board game, and casino industries.
Video Game Industry on shaky ground
With hefty tariffs imposed on imports from countries like Vietnam and China, where significant gaming hardware is manufactured, the video game sector faces mounting challenges. These levies, reaching as high as 54%, lead to increased production costs that threaten to inflate consumer prices.
Concerned players, the Entertainment Software Association (ESA) notes that such tariffs inflict harm on industries with complex supply chains, as products often pass through multiple countries before landing on store shelves [3]. For example, Nintendo's strategy to shift manufacturing to Vietnam now grapples with the bitter pill of fresh tariffs, making the Switch 2 console more expensive in the US than in Japan [3].
Board Game Industry in dire straits
The U.S. board game industry braces itself for a significant blow due to Trump's over 100% tariffs on Chinese imports. The reliance on China for essential components and materials means increased costs for publishers as they struggle to maintain profitability without readily available domestic manufacturing alternatives [4].
Casino Stocks and Consumer Behavior feel the heat
The tariffs' impact on casino stocks is indirect, yet the general economic uncertainty and potential consumer spending downturn could dent casino revenue and stock performance. Given the higher costs consumers may face due to tariffs, discretionary income for leisure activities like gaming might weaken, causing ripples through the market [4].
In summary, Trump's tariffs pose a significant threat to both the video game and board game industries by inflating production costs and potentially shifting consumer behavior. While the direct impact on casino stocks may be less pronounced, these broader economic effects have the potential to influence market performance significantly.
Extra Insight:
- According to gaming analyst Barry Jonas of Truist Securities, casino executives remain generally optimistic about their businesses despite market turmoil and potential tariff uncertainty [1]. However, the implementation of tariffs is still in its early stages, and their full impact has yet to unfold.
- In addition to the possible effects on gaming industries, Trump's second term is likely to usher in a deregulatory tone for the economy, with his new appointee, Brian Quintenz, leading the Commodity Futures Trading Commission (CFTC) [2]. As a former CFTC commissioner and crypto advocate, Quintenz's take on regulating peer-to-peer exchanges, online wagering websites, and apps may prove favorable to digital currency and burgeoning assets like prediction exchanges.
- Prediction market innovators like Kalshi have already recruited high-profile names like Donald Trump Jr. to bolster their advisory board, setting the stage for interesting regulatory developments in the near future [2]. Although sports-related event contracts offered by such exchanges raise concerns for the legal gaming industry, the CFTC is currently in the midst of reviewing their legality as either financial instruments or gambling platforms.
[1] https://www.escapistmagazine.com/news/view/295549-Tariffs-Will-Raise-Nintendo-Switch-Price-by-400
[2] https://www.kalshi.io/blog/kalshi-hires-donald-trump-jr-as-advisor
[3] https://www.pcgamer.com/nintendos-switch-price-speculation-threatens-to-make-the-console-even-more-expensive/
[4] https://www.newswire.com/news/us-board-game-industry-under-pressure-to-shift-production-due-to-china-tariffs-21174062
- President Donald Trump's tariffs, implemented during his second term, are causing significant challenges for the video game sector, with tariffs on imports from countries like Vietnam and China reaching as high as 54%.
- The board game industry in the US faces a potential blow due to Trump's over 100% tariffs on Chinese imports, as many essential components and materials are reliant on China.
- The casino industry is experiencing indirect effects from Trump's tariffs, as the general economic uncertainty and potential consumer spending downturn could negatively impact casino revenue and stock performance.
- Concern over increased production costs has led the Entertainment Software Association (ESA) to express concern, stating that tariffs inflict harm on industries with complex supply chains.
- Video game industry giants, such as Nintendo, are feeling the pinch, with the Switch 2 console becoming more expensive in the US due to Trump's tariffs.
- The tariffs' ripple effects on the board game industry could lead to increased costs for publishers without readily available domestic manufacturing alternatives.
- Despite market turmoil and potential tariff uncertainty, casino executives remain generally optimistic about their businesses, though the full impact of tariffs is still unfolding.
- Trump's second term has introduced a deregulatory tone for the economy, with Brian Quintenz, a former CFTC commissioner and crypto advocate, leading the Commodity Futures Trading Commission (CFTC).
- Prediction market innovators, such as Kalshi, may benefit from Quintenz's term at the CFTC, as his stance on regulating peer-to-peer exchanges, online wagering websites, and apps could be favorable to digital currency and burgeoning assets like prediction exchanges.
- High-profile names like Donald Trump Jr. have joined Kalshi's advisory board, setting the stage for regulatory developments in the prediction market industry, with sports-related event contracts being a point of contention between the legal gaming industry and such exchanges.