Sports Betting Industry Feeling the Effects of Trade War

Legal sports betting has become one of the most profitable industries in the US, but it has not been immune to the recent economic turmoil.

Several sports betting industry leaders have seen their stock prices tumble over the last few days. Retail operators have felt the most significant impact as the costs for imported equipment are expected to skyrocket.

Wynn Resorts took one of the worst hits, dropping around 11% since Tariffs were announced last week. MGM and Caesars were also hit hard but had some relief thanks to their online sportsbooks. Wynn no longer has an online book.

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Online betting sites have weathered the economic fallout well so far. FanDuel and DraftKings have seen slight declines, but nothing near as severe as rivals with large retail operations. The lack of physical equipment means they don’t need to import many goods, allowing them to weather the storm for now.

With no end in sight for the US-initiated trade war, the sports betting industry could take an even bigger hit over the coming weeks, months, and years.

Online Sports Betting Faces First Economic Challenge

The online sports betting industry successfully navigated the economic downturn from the COVID-19 pandemic, but this will be a different test. Several major US financial firms are now saying that it is becoming likely the country will slip into a recession. It has been almost 20 years since the last recession, meaning it will be the first time since online sports betting became legal.

The biggest question is how Americans will manage their money during this challenging time. Unlike Las Vegas sportsbooks, bettors don’t need to book plane tickets or hotel stays to place bets online. Will that be enough to keep them betting, or will we see them empty their sportsbook accounts to prepare for an uncertain financial future?