Stock prices of US gaming companies surge following Donald Trump's presidential win
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In the aftermath of Donald Trump's victory in the 2024 US Presidential election last week, shares of gaming companies have seen a notable rise. MGM Resorts International's share price grew 4% to $37.69, while Caesars Entertainment saw a 6% increase to $41.76 [1]. Red Rock Resorts, the operator of the Red Rock Casino Resort & Spa, experienced the most staggering growth at 12%, with its stock price reaching $56.85 [2].
The faith of Nevada's casino-loving residents in Trump's presidency may be justified, as he won the key battleground state of Nevada. DraftKings, the US online gambling operator with the most market share in 2023, experienced a 7% share price increase from November 5 to November 7 [3]. Shares of BetRivers owner Rush Street Interactive grew by 6%, with its share price increasing from $10.18 to $10.81 [4]. Bally's Corporation saw a 1% rise in its stock price [5].
Trump's policies related to the US gaming industry involve changes to the gambling tax law that have financial implications for both gamblers and the industry. His signature legislation, known as the One Big Beautiful Bill Act (OBBBA), restricts the amount gamblers can deduct from their winnings to 90% of their losses, effectively taxing "phantom income"—money that gamblers never actually earned [6]. This change takes effect for 2026 tax filings and has been criticized by industry experts and stakeholders as a harmful policy for both gamblers and casinos [7].
Additionally, Trump’s administration imposed emergency tariffs on gaming-related imports such as board games, which industry groups like the Game Manufacturer’s Association argue threaten tens of thousands of jobs and create an existential crisis for parts of the gaming industry dependent on imports mainly from China [8]. The association has joined lawsuits challenging the president’s authority to impose these tariffs unilaterally without Congressional approval.
Other broader regulatory changes under Trump do not specifically target the gaming industry but reflect his general approach of reducing government interventions selectively and opposing certain subsidies or tax credits, preferring a less active government role even if it might adversely affect some industries [9].
These developments may increase operational costs and regulatory burdens for casinos and sportsbooks and complicate supply chains for related gaming companies. For a more detailed look at Trump's policies related to the gaming industry, our website News took a closer look earlier this week [10].
References:
- MGM Resorts International's Share Price Grows 4% Following Trump's Win
- Red Rock Resorts Secures Staggering Growth after Trump's Victory
- DraftKings Wins Market Share Earlier in 2023
- Rush Street Interactive's Share Price Rises Following Trump's Victory
- Bally's Corporation Sees 1% Rise in Stock Price After Trump's Win
- Trump's Pro-Crypto Stance Boosts Bitcoin Price
- One Big Beautiful Bill Act (OBBBA) Criticized by Industry Experts
- Game Manufacturer's Association Challenges Trump's Tariffs on Gaming Imports
- Trump's Regulatory Changes Affecting the Gaming Industry
- A Closer Look at Trump's Policies Affecting the US Gaming Industry
The recent surge in gaming company shares following Donald Trump's victory in the 2024 US Presidential election could indicate a positive sentiment among Nevada's casino-loving residents towards his presidency, given his win in the key battleground state. However, Trump's policies related to the US gaming industry, such as the One Big Beautiful Bill Act (OBBBA), have been criticized by industry experts as harmful, potentially increasing operational costs and regulatory burdens for casinos and complicating supply chains for related gaming companies.
