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Donald Trump’s second stint at The White House means new tariff rules for gaming. Those who work in the industry have raised concerns about illegal immigrants, which could impact how land-based and online casinos operate.
Taxes on offshore technology are another potential area of change, with the US gambling industry adapting to new regulatory requirements. While there have been concerns in some industries, gaming should not be significantly impacted. This is because casinos in most states, including those in Las Vegas, have been operating under strict employment rules for many years.
Will the gaming industry be impacted by the new tariffs?
The federal government has cracked down on illegal workers in a big way following Trump’s second inauguration in January. However, no major issues are anticipated with losing workers to deportation in the gaming sector.
However, the government’s decision to enforce stricter trade rules is likely to affect the economy as a whole. Taxes on products from China, Canada, and Mexico could be cause for concern for the gambling world. Trump is hoping to introduce a 25% tariff on goods from these countries by February.
It is believed that the rising costs of electronic parts will make gaming machines more expensive to make. Tariffs could also decrease the speed of computer chip deliveries, negatively impacting slot machines and online gaming.
Could energy prices eat into casino profits?
Land-based casinos traditionally use large amounts of power, something energy price hikes will almost certainly impact. With gambling operators enjoying relatively small profit margins, attempts to produce more fossil fuels could well increase utility bills in the US.
Trump himself famously was the owner of multiple casinos in Atlantic City that went bankrupt. This was largely due to the decentralization of the gambling industry, which took players elsewhere. Speaking on his ventures in this area, the current President said:
“Atlantic City fueled a lot of growth for me,” Trump said, reflecting on the significant personal gains he managed to secure from these failing ventures through a combination of strategic financing and business maneuvers — a point he has often highlighted in defending his business record.
While these are potentially negative side effects, there are some positives to consider. Industry experts feel that the government’s objective of reducing federal control and handing greater power to state regulators could prove beneficial in the long term. It remains to be seen as to whether the positives outweigh the negatives. Gambling operators are likely to act cautiously to begin with.
