Both China and the US are beginning to set tariffs that could slightly affect the future of the gambling industry and online slots industry. But thanks to promotions like free deposit and play gamblers still enjoy online slots. But is it all doom and gloom? Like something out of a superhero flick, it all started with Trump and his ‘friendship’ with Kim Jong-un, the leader of North Korea. Trump got the title for the first active US president to go to North Korea, but we should remember this is a man who has made a career from showmanship.
The trade war begins
Trump did not head to Beijing though as he visited the eastern end of Asia, which came as a bit of a surprise. People said time would have been better spent there kindling US friendships with China than posing with Kim Jong-un. The trade war Trump has started has clearly lost him any potential allies he had there.
America’s ties with China are valuable for so many industries, jobs and for the US it also literally means trillions of dollars in revenue. Having said that – is there evidence that it could effect the gambling industry? China’s ministry of foreign affairs advised its people not to travel to the US. Vegas for a start has had a decline in tourism which has been made evident from the sliding revenue from the tables normally popular among Chinese gamblers, like baccarat.
The extent of the effect
Strict regulations and a change in political friendliness will affect the future of the gambling industry indeed, but really that is the way things have always been. With a bit of luck there will be a little effect to be felt but all in all what would it truly matter anyway if gamers can still play as much as they want to? And, we can always take solace in the fact that things are constantly changing in business and in that context what is going on here makes no difference.
But, all that being said, on a much more sombre note after talks with Buenos Aires in December, Trump had said that he has agreed to delay tariffs until a deal is worked out and finalised. It did not happen though, and the efforts from the US side to restrict Chinese telecom big timers Huawei will have a factor in these negotiations, and indeed it will the gambling and slots industry. As long as a mutual conclusion is made soon, both will grow revenue and keep their licenses. If not, revenue could decline and licenses might get pulled in the end.
We have everything crossed that the impact of the China and US relations will have a little effect when it comes to the future of the online slots industry, but as with all things to do with politics and business we can never really be sure. Facts are facts though, and hopefully our speculations remain just that. As long as slots and gambling remain intact though, what does it all matter?