iGaming Companies’ Stocks Plummet: Market Loses Billions

Stock Market Crisis Hits the Gambling Industry

This week, the shares of the largest US iGaming companies sharply declined, leading to multi-billion-dollar losses. The reason is financial market instability, recession risks, and uncertain US trade policy.

Major Losses Among Gambling Companies

The sharp drop in stock prices affected key industry players:

• PENN Entertainment – down 9.5%, stock price at $16.55 (which is 28.3% below its yearly high).
• DraftKings – lost 5.5%, closing at $37.24.
• MGM Resorts International (BetMGM) – decline of 0.44%, price at $31.89.
• Las Vegas Sands – the only company with a slight increase (+0.6% to $45.34).

Reasons for the Stock Decline

The main factor behind the crash was President Donald Trump’s policy shift in trade relations:

• Increase in tariffs on Chinese goods to 20%.
• Introduction of a 25% tax on imports from Canada and Mexico.
• Postponement of some of these measures, which failed to stabilize the market.

All of this led to a negative investor reaction and mass stock sell-offs.

Overall Market Decline

The market reacted with a sharp drop in indices:

Financial experts, including analysts from Goldman Sachs and JPMorgan Chase, warn of a high probability of recession, which could lead to reduced consumer spending, including expenses on online gambling.

Investor Reactions and Market Outlook

Investors continue to closely monitor economic indicators. Experts note that the high dependence of gambling companies on international markets, especially in Asia, makes them vulnerable to trade wars and global crises.