Online-centered gaming stocks’ have declined less than their brick-and-mortar-heavy competitors in the days after President Donald Trump announced new tariffs on most other countries.
Key Takeaways
- Digital-focused gaming companies outperformed traditional operators after the announcement of new tariffs, with smaller stock declines than those with large physical and international assets.
- Investors favored online operators like Rush Street Interactive, DraftKings, and FanDuel, viewing them as safer due to minimal exposure to overseas-produced goods and international markets.
- Brick-and-mortar and internationally reliant companies like MGM, Wynn, and Las Vegas Sands saw sharper stock declines, driven by tariff-related cost increases and reduced global tourism.
Major digital-focused sports betting and iGaming platforms have suffered single-digit declines since Trump announced sweeping tariffs April 2, outperforming the S&P 500 and the Nasdaq. Companies with large physical property portfolios have underperformed the leading stock indexes.
This decline is even more pronounced among operators with significant overseas assets.
Online operators outperform
Online companies have been among the market’s best performers since the tariff announcement sparked significant losses.
Rush Street Interactive stock has dropped around 4% since April 1, leading all major publicly traded gaming stocks. The BetRivers parent company is a comparatively minor player in the U.S. digital gaming space but is a market leader in Mexico and Latin America.
U.S. market share leaders DraftKings and FanDuel, saw 5% and 6% declines, respectively, since April 1. Neither company operates a brick-and-mortar property.
Investors may consider these companies safer options without the exposure to the projected increased prices in hundreds of billions of dollars worth of goods, including casino gaming equipment produced overseas.
Las Vegas casinos slightly top the markets
Multiple gaming companies with significant Nevada assets have begun April with stock performances near or ahead of the market.
Caesars, one of the two largest operators on the Las Vegas Strip, suffered a 6% decline. The company also operates regional properties and is top five in the country in online casino and sports betting market share.
Since April 1, online-focused gaming brands' stocks have declined less than brick-and-mortar-dependent companies, especially those with major overseas assets:$RSI (4)$DKNG (5)$FLUT (6)$CZR (6)$GDEN (7)$BYD (8)$RRR (10)$CHDN (11)$MGM (14)$PENN (15)$LVS (20)$WYNN (21)
— Ryan Butler (@ButlerBets) April 8, 2025
Stocks for Boyd Gaming and Red Rocks Resorts have fallen 8% and 10%, respectively, during this time. The companies operate “local” casinos around Las Vegas and Nevada.
Along with the likelihood of increased physical costs, Nevada casinos face decreased tourism. Flights, particularly from other countries, have declined since Trump took office. Increased consumer costs could also diminish customers’ expendable income.
International-heavy companies lag
The tariffs have diminished internationally focused companies’ stocks most significantly in the first week of trading since their announcement.
MGM has declined 14% since April 1. Though it also has a massive portfolio on the Las Vegas Strip, a score of regional properties, and a strong online platform, the company has invested billions in Macau and other international markets, an investment threatened by the current global economic climate.
Companies without similar U.S. assets have suffered more significant declines.
Las Vegas Sands, which has no U.S. assets, has seen its stock drop roughly 20% since the beginning of the month. Wynn, with just three U.S. properties, has fallen 21%.
Bottom line
Investors have so far preferred digitally focused companies and those with significant U.S. assets over operators that rely on overseas revenues. The significant market-wide declines indicate all gaming entities – and the global economy – are positioned to suffer under the tariffs.
