President Trump announced that sweeping tariffs on all countries would be changed. Economists have warned that this will increase prices and everyday consumer goods, slowing hiring and increasing layoffs.
The Trump administration’s tariff change means that people are looking at a possible increase in inflation while economic growth will be stunted. For now, this has got investors trembling as they think of their portfolios possibly losing value. Investors, including shareholders in Las Vegas-based casino companies and digital casinos, are definitely feeling the pain. To experience more of Las Vegas on the digital side from the comfort of your home, click this link.
Casino companies, especially online ones, have seen an increase over the past decade as people enjoy the convenience that technology provides.
What Does It Mean For Casino Stocks?
Already, stocks have dropped to their lowest level ever in years which is evident through the stock in the Las Vegas Sands Corp, which is based in Nevada that fell by 8.35%. Shares in some of the biggest casinos in Las Vegas experienced a drop between 6% and 10% after this announcement.
In general, the US stock market has seen a significant sell-off in shares since March 10th of 2025, and there’s typically a rising concern from investors over any financial impact that this tariff plan has.
How Casino Stocks Work
Casino stocks are shares of publicly traded companies that operate resort casinos or other gambling-related businesses. Similar to other stocks, they commonly have partial ownership by the company. When an individual purchases a casino stock, they’re essentially investing in the financial performance of a casino. Below are the details of how these stocks work.
What Do They Represent?
Casino stocks give an individual a share in the profit and losses of a casino company. Commonly, the investment gains through an increase in stock price, which the company will sell at a profit. This is known as capital gains. At times, some casino companies pay a certain portion of promised profits to the shareholders, which is known as dividends.
Types of Companies
Casino-related companies can include integrated resorts, regional casino operators, online gambling and sports betting firms, and gaming tech providers.
An example of an integrated resort is Las Vegas. An integrated resort is a large-scale development that combines a casino with various forms of entertainment, such as hotels and convention centers. It commonly also includes luxury retail outlets and fine dining experiences. These commonly aim at giving players a more comprehensive experience beyond gambling.
Online gambling and sports betting refer to playing a game of chance or skill over the Internet. These commonly include online casinos, live dealer games, online lotteries, bingo, and virtual sports. Online sports betting involves placing a wager on the outcome of real-world sports events through an online platform. This is common with football, basketball, and horse racing.
Gaming tech providers are the backbone of online and land-based casino ecosystems. They supply these entities with gaming content, betting platforms, accurate systems, and security. Some common examples of these include Microgaming (now Games Global) and Pragmatic Play.
What Controls Casino Stock Prices?
Several factors influence the value of casino stocks:
- The revenue is actually derived from gaming, hotels, restaurants, and entertainment.
- The tourism and travel trends that people are currently enjoying.
- Economic cycles in the sense that people tend to spend more on entertainment if the economy is good.
- Any new regulations and licenses, such as what has happened with the Trump administration imposing these new tariffs.
- Expansion into other markets, such as international resorts or online gambling for land-based casino resorts.
- Major natural events such as natural disasters.
- Any new sports betting laws.
Investing in Casino Stocks
Investing in Casino stocks is an excellent way to gain exposure to tourism, entertainment, and the gaming sector. These stocks commonly mix hospitality, real estate, and gaming revenues. They can be influenced mostly by tourism trends, consumer spending, and any changes in laws.
Any individual willing to invest in casino stocks should select between investing in an integrated resort operator, online gambling, a sports betting company, or a game tech provider. Or, on the other hand, create an entire portfolio that incorporates these three types.
An individual can invest by buying individual stocks or buying exchange-traded funds (ETFs) that hold casino or gaming stocks and investing in real exchange investment trusts (REITs) that own casino real estate.
Why Investors Like Casino Stocks
- There’s loads of potential cash flow as casinos commonly generate huge free cash amounts.
- There’s a very thin line between travel, leisure, and the casino world; hence casino stocks can get a boost from the tourism sector.
- Casino stocks are diverse, giving investors exposure to both technology and real estate.
- Casino stocks possess the potential for growth, especially online through iGaming and sports betting globally.
Risks Associated With Investing in Casino Stocks
Investing in Casino stocks has potential risks similar to investing in any other form of business.
Here are the common risks associated with casino stocks:
- They can be impacted by regulatory changes, especially with online casinos.
They can be impacted by a negative economic cycle, especially when spending drops during recessions.
- Many casino resorts tend to have significant debt due to development, which results in high debt levels. So, it might take time to actually gain from an investment.
Investing Tips
Investors should diversify their portfolios by investing in both traditional resorts and digital companies. They should also watch out for changes in laws and regulations and focus on gaming-focused ETFs to ensure broader exposure.