Casino
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The casino industry in the US has been experiencing revenue growth, which is mainly tied to the legalisation of online casinos in several states. The success stories in other regions have sparked this change.

Take UK casino sites as an example. Their revenue generation has resulted in the development of more public infrastructure in the areas where they operate. As such, US states have followed suit to address the budget deficits. But could the current US-Canada trade wars impact the casino industry negatively? We look at the facts and the predictions.

What is the US-Canada Trade War?

On 1st February 2025, President Donald Trump stated that the US would impose tariffs on imports from Mexico and Canada. Per his announcement, most goods from Canada would now have a 25% tax, save for goods such as oil and energy products that would enjoy a 10% tax. Canada retaliated with tariffs, including a 25% tariff on American goods up to $20 billion. Understandably, this trade war resulted in an increase in consumer prices in North America. As people grapple with this ongoing war, casino operators and players cannot help but wonder how the supply chain changes will affect them.

Is There a Ripple Effect on Casinos?

Casinos operate in an industry where political, economic, societal, technological, legal, and environmental changes affect them. Let's review how the new tariffs could play into this:

A change in supply chains.

Many casinos in Canada source their gaming from the US. With the ongoing trade wars, some casinos, such as those in Alberta, have decided to source their equipment from other suppliers. This could affect their operating costs and the US-based suppliers, who have now lost a source of income.

An increase in operational costs.

Canada and the US have enjoyed cross-border trade to reduce operational costs for years. However, with the new tariffs, such collaborations will prove costly, forcing players to cut back on them. With casinos no longer enjoying low operational costs, their profit margins will decrease—they are likely to address this by increasing the cost of playing.

At the same time, the loss of cross-border trades could push casinos to be more innovative in their customer attraction and retention strategies. More casinos will likely embrace loyalty programs or offer more than just gaming to ensure they capture the attention of their target consumers.

A change in spending power.

The changing economic and political landscape affects everyone. The OECD predicts that inflation could arise in the US, resulting in an additional spending of $1,600 per household.

Unfortunately, such changes in spending power will result in more discretionary spending, with more people focusing on their needs rather than their wants. Casinos might need to adapt their marketing strategies and price points to the changing times. However, it's important to note that some consumers adapt to uncertainty by spending more.

A change in investor spending.

Investors generally review the market conditions before backing an investment. The market conditions have been favourable in the past, especially with the changing attitudes towards gambling. However, with the market uncertainty following the new tariffs, investors may take a step back to survey the situation before moving. At the same time, some investors may see this as a golden opportunity for strategic partnerships, mergers, and acquisitions.

A growth in online casino gaming.

The past few years have been pivotal in online casinos as more states have opened up to the idea. With the supply chain changes, dips in consumer spending, and changing economic landscapes, more casino operators may choose to go online. After all, online games are cheaper and offer players convenience, enabling operators and players to navigate the changing industry.

As the war continues, casino operators will need to adapt to changing market conditions if they wish to remain profitable. This means going online, investing in customer experiences, or seeking other revenue streams.