Stock prices of a US gaming company surge following Donald Trump's election win.
In the aftermath of the 2024 US Presidential election, the gaming sector has shown signs of potential growth. Donald Trump's victory, which saw him secure 312 electoral votes against Kamala Harris' 226, has sparked a positive response in the stock market.
Shares of several gaming companies have shown significant growth since Trump's win. Red Rock Resorts experienced the most significant growth at 12%, followed by Caesars Entertainment with a 6% rise to $41.76, MGM Resorts International with a 4% increase to $37.69, and Bally's Corporation with a 1% rise.
One of the key areas where Trump's policies could impact the gaming industry is through an executive order aimed at combating "debanking." This order seeks to prevent payment processors like Mastercard and Visa from censoring legal content in games by withdrawing payment services. The potential impact includes empowering online game platforms to resist pressure from payment processors, possibly leading to new laws and regulations that could neutralize payment processors' use of "reputational risk" as justification for denying services to gaming companies. However, critics caution that the order may not fully cover payment processors, could be revoked by future presidents, and might not automatically reinstate games already removed.
Trump's tariff policies, which involve imposing tariffs on imports from countries like China, have adversely affected parts of the gaming industry, notably the board game segment. These tariffs have been described as an "existential crisis," threatening tens of thousands of jobs due to increased costs of imported game components from China.
Regarding tax policies, there have been legislative efforts during Trump's administration related to gambling taxes, with the gaming sector pushing to reverse provisions requiring gamblers to pay taxes on some losses.
In summary, Trump's recent policies present a mixed impact on the gaming industry. The executive order on debanking could reduce payment processor censorship of games, while tariffs on imports have increased costs and threatened jobs in the board game segment. Tax laws on gambling have seen legislative efforts aimed at easing tax burdens on the industry.
These actions reflect Trump's approach to both defend certain gaming sector freedoms financially and impose trade/tax policies with more mixed or contentious effects. The full effects of the executive order are still unfolding, pending additional regulations expected within the next year.
Meanwhile, Trump's pro-crypto stance has also contributed to a spike in Bitcoin price since his victory. The US gaming industry, particularly online platforms, may benefit from this trend as cryptocurrencies become more integrated into the gaming ecosystem.
[1] https://www.ourwebsite.com/trump-gaming-policy-analysis [2] https://www.ourwebsite.com/trump-gaming-policy-impact [3] https://www.ourwebsite.com/gaming-industry-tariffs [4] https://www.ourwebsite.com/gaming-tax-laws-trump-administration
- The executive order, intended to combat "debanking," presents an opportunity for online game platforms to resist pressure from payment processors, which could result in new laws and regulations that may neutralize payment processors' use of "reputational risk" as justification for denying services to gaming companies.
- The spike in Bitcoin price, a result of Trump's pro-crypto stance, could potentially benefit the US gaming industry, particularly online platforms, as cryptocurrencies become more integrated into the gaming ecosystem.
