Trump tariffs: iGaming stocks spiral as US president orders 10% tariff on UK goods

RawPixel

US President, Donald Trump, has revealed a set of sweeping “reciprocal” tariffs on goods imported from several countries around the world – the UK included.

President Trump dubbed the day of the announcement ‘Liberation Day’ and promised that 2 April would be remembered as “the day American industry was reborn.” 

Want to play casino games or bet on sports? Check out the best UK online casinos and best UK bookmakers today!

However, economic analysts and key political figures have already voiced opposing sentiments – proving friction between this latest US policy and international allies. 

UK Prime Minister, Sir Keir Starmer, outlined that these new tariffs will “clearly” have an impact on the country’s economy. 

So, what repercussions should the UK gambling industry expect when Trump’s fresh tariffs roll out on 5 April?

The answer begins within the stock market. 

Flutter Entertainment — the world’s largest iGaming corporation — owns several popular UK gambling brands, including Paddy Power, Betfair and Sky Bet. 

The Ireland-headquartered firm stooped to a six-month low on the London Stock Exchange (LSE) the morning of 3 April – mere hours after the US installed a 10% tariff on UK goods. 

Another crucial operator in the UK, Entain, experienced its worst performance on the London Stock Exchange since August 2024 - following Trump’s speech – opening at £563.80; a near 10% drop on the previous five days. 

With Ladbrokes, Coral and Sportingbet under its belt, Entain serves a significant portion of British punters. 

Market uncertainty has prompted investors to sell their shares en masse. 

On the other side of the coin, Rank Group enjoyed a major upswing in the aftermath of Trump’s revamped UK tariffs. 

The Grosvenor Casino-owner climbed by more than 8% before midday on 3 April – marking potential confidence in the UK, Belgium and Spain-only land-based and online iGaming operator.

Despite the descent of US-facing iGaming operators on the LSE, the UK iGaming industry should be free from immediate penalisation as a result of US tariffs. 

Unlike other prominent UK industries, the iGaming sector primarily operates online. This means that UK-based operators do not traditionally export goods from the UK to the US in order to do business across the pond. 

As Trump’s tariffs — in their current guise — solely target physical items, UK operators should not directly encounter excessively negative consequences. 

Indirect ramifications remain a demonstrably real threat, as evidenced by the downturn endured by Entain and Flutter this morning. 

For example, ongoing stakeholder sell-offs could force publicly traded iGaming entities to cut spending in certain areas. 

While UK steel and chemical companies will be hit heavily by tariffs, physical gambling products, such as slot machines, are generally manufactured in the US. Moreover, most gaming terminals are built from plastic materials. 

Still, worries concerning the trade of machinery and electronics persist; UK companies who supply domestic products to US-based iGaming groups will feel the full force of Trump’s trade war.

One vital arena that Trump has not yet sought to battle is digital. In 2020, the UK set up a 2% Digital Services Tax (DST) that charges social media services, search engines and online marketplaces. 

Should the US opt to match the DST via a similar provision, British iGaming operators could suffer the brunt of the impact.

As for the industry’s economic outlook, recent BBC forecasts detail that the cost of living may increase or decrease – with either outcome majorly influencing how consumers invest in the iGaming industry.