Trumps trade war and how it effects digital marketing in Igaming

By Toby Oddy, CEO of Digital Fuel

In the high-stakes world of online gaming, our agility as a sector has always been our strength. We've ridden waves of regulatory reform, embraced new technology with open arms, and turned marketing into a science of precision and scale. But the latest challenge facing us is not coming from inside the house it’s being forged in the political furnace of U.S. trade policy.

President Donald Trump’s recent expansion of tariffs on imports — particularly from China is sending shockwaves through global markets. While these tariffs were not aimed directly at the digital services or gaming industries, the collateral damage is real, measurable, and growing by the day. As a leader in the online gaming space, I believe it's vital to understand how these macroeconomic policies affect our business, our marketing efforts, and ultimately, our growth potential.

The Big Picture: What’s Happening with Tariffs

On the surface, this is a story of international trade tensions. The U.S. administration has reignited its trade war with China, imposing a 104% tariff on Chinese electric vehicles and threatening an additional 50% across other product categories. The Chinese government has responded in kind with a 34% retaliatory tariff.

That tit-for-tat escalation has sparked panic in financial markets, disrupted supply chains, and eroded business confidence. The FTSE 100 tumbled by over 4% during early trading hours after the announcement, while the Dow Jones Industrial Average dropped nearly 4% as well, reflecting investor anxiety across multiple sectors including ours.

But beneath these headlines lies a less obvious, yet deeply consequential ripple effect: the squeeze on advertising and digital marketing budgets.

Digital Marketing: The Unexpected Casualty

As an industry, online gambling and gaming lives and breathes digital marketing. Whether it’s programmatic ads targeting fantasy sports fans in New Jersey or influencer partnerships promoting esports betting in Asia, our growth is powered by data, reach, and spend.

But when tariffs increase the cost of goods and services especially for companies heavily reliant on international trade the marketing line item is often one of the first to be cut. And that’s exactly what we’re seeing.

According to a recent Business Insider report, major U.S. and global brands are slashing their advertising budgets in response to the increased operating costs caused by Trump’s tariff policies. Meta, Amazon, and even Google have signalled lower ad revenues due to diminished brand spending. Influencer marketing, one of the fastest-growing segments in digital has seen pullbacks from major players like Shein and Halara, whose supply chains are entangled with Chinese manufacturing.

For online gaming and gambling companies, many of whom rely on performance marketing and affiliate partnerships across the globe, this creates a triple threat:

Higher competition for reduced ad inventory
Increased cost per acquisition (CPA)
Reduced willingness to spend among target demographics facing inflationary pressures

Even though we’re not selling physical goods affected by these tariffs, the ecosystems we operate within Meta and Google Ads, programmatic video, and streaming content sponsorship are seeing upward pressure on costs and downward pressure on performance.

Let’s talk numbers. If you're watching the market, as I am. You'll have seen the direct financial fallout across both the FTSE and Dow Jones, particularly among gaming and betting companies.

UK (FTSE 100) Gambling Stocks:

Entain plc (Ladbrokes, Coral, bwin):
Fell from 505.6p to 466.2p post-tariff announcement before modest recovery.
This follows an already challenging 12-month period with a 50% drop in market cap.
Flutter Entertainment (Paddy Power, Betfair, FanDuel):
Experienced a mild pullback, despite strong U.S. growth via FanDuel.
Evoke plc (William Hill):
Dropped 4.04% on the day of the announcement, closing at 38.38p.

U.S. Gambling Stocks (NYSE & NASDAQ):

DraftKings Inc. (NASDAQ: DKNG):
Shares fell 1.46%, closing at $32.40.
Caesars Entertainment Inc. (NASDAQ: CZR):
Slight increase of 0.93%, ending at $23.97 likely due to positive EBITDA forecasts.
MGM Resorts (NYSE: MGM):
Declined 0.82%, ending at $26.08 continuing a three-month slide.

These fluctuations can’t all be blamed on tariffs. We’re also navigating changing consumer behaviour, macroeconomic uncertainty, and regulatory headwinds. But it’s clear that the market doesn’t like unpredictability. Tariffs have reintroduced uncertainty at a time when stability is sorely needed.

Why This Matters More in IGaming and Gambling?

Unlike many other industries, we’re not selling long-lasting physical goods. We sell experience, entertainment, and engagement. That makes trust and top of consumers minds awareness critical and both require investment in marketing.

Reduced spend on brand awareness campaigns, affiliate and player bonuses, and influencer partnerships will directly impact user acquisition funnels. We’ve already seen brands across fashion, finance, and tech scale back campaigns that had previously been key drivers of high-ROI growth.

Online gaming is no different. With tighter budgets and rising customer acquisition costs, we risk missing growth targets or worse, cannibalising long-term brand value for short-term financial hygiene.

The Knock-On Effect of Digital Services Taxes (DSTs)

As if tariffs weren’t enough, there's also the looming shadow of international digital services taxes (DSTs). These taxes, aimed at major U.S. based digital platforms, are being introduced by several European and Asian markets as a way of rebalancing perceived unfairness in corporate tax structures.

In response, Trump’s administration is threatening retaliatory tariffs, effectively turning digital services themselves into political bargaining chips.

For an industry like ours which depends on platforms like Google, Facebook (Meta), YouTube, TikTok, and programmatic networks this introduces yet another layer of cost and unpredictability. If digital services become more expensive due to cross-border taxation, those increased costs will inevitably trickle down to advertisers including us.

So, What Do We Do About It?

As CEO, my job is not only to anticipate change but to respond with clarity, strategy, and resilience. Here's how I believe the online gaming sector especially those of us heavily reliant on digital marketing must adapt:

1. Diversify Our Media Mix

We must reduce over-dependence on Meta and Google ecosystems. CTV (connected TV), podcasting, direct publisher buys, and first-party data retargeting must become core to our media planning.

2. Strengthen Localisation

Tariffs and digital taxes often depend on geographic policy. That means localisation of campaigns, platforms, and partnerships is not just smart marketing, it's future-proofing.

3. Go Deeper on Organic Growth

This is the time to double down on SEO, email marketing, owned content, and community building. Paid media is volatile. Owned channels are forever.

4. Embrace Dynamic Budgeting

Set your marketing budgets as flexible frameworks, not fixed allocations. Be ready to pivot spend away from taxed platforms to emerging channels with better ROI.

5. Speak with One Voice

Now more than ever, the Igaming and Gambling sector must unite. Trade associations, regulatory working groups, and policy forums need strong voices from digital-first operators. We need to help shape, not just survive, the future of global trade.

Closing Thoughts: Playing the Long Game

It’s easy to panic when the markets wobble and acquisition costs rise. But those who weather this storm will be the ones who remain focused on sustainable growth, robust tech stacks, and customer-centric marketing.

This is not the first time political winds have shifted against the current of digital innovation. It won’t be the last. But as leaders, we are measured not by how we grow when it’s easy but by how we adapt when it’s hard.

Tariffs may be beyond our control. But how we respond to them with creativity, resilience, and strategic vision will define the next era of online gaming. If you would like to know more on how we can help your Igaming or Gambling business please get in touch and we will be happy to help.