China and US Relations Could Affect Future of Online Slots Industry?
China-US relations have never been constant. Rather, it ranges between tense standoffs, interconnected economies, and trade wars. The China-United States trade war refers to the ongoing economic conflict between the United States and China.
Back in 2018,President Trump started to set tariffs on products from China to force China to adjust what the US refers to as “unfair trade practices”. In return, China accused the US of protectionism and restricting China’s economic growth. Even though the two countries reached an agreement in January of this year, relations are still tense.
The trade war has negatively affected the economies of both countries and some even believe that it could impact the future of the online slots industry – join and play. But how accurate is this prediction?
The Trade War Starts
For the last couple of years both China and the US have set tariffs on one another’s goods. For quite some time now US President Donald Trump has accused China of not only unfair trading practices but also intellectual property theft. China, on the other hand, thinks that the US is trying to restrict its economic growth. This comes even though US-China relations impact many industries and jobs. However, could this trade war affect the gambling industry, and more specifically the online slots industry?
Effects of The Trade War on Gambling Industry
One of the first steps China took in retaliation was advising its people to not travel to the US. The effect was evident as Vegas showed a decline in tourism. This resulted in less revenue generated by casino games that are popular among Chinese gamblers, such as baccarat. In fact, the total revenue generated by baccarat dropped by 55% when compared to last year May. It is thus clear that the trade war could impact the gambling industry. However, to what degree will it impact the online slots industry?
The Future of The Online Slots Industry
Since slots are mainly played online, the trade war should have little effect on the online slots industry. Even though China has advised its resident not to travel to the US, they can still play slots online.
The online slots industry is one of the fastest-growing industries in the world. So, it is highly unlikely that the relations between China and the US will be detrimental to the industry. On the other hand, it might just lead to growth in the industry, as most of the players who used to physically visit the US will now turn to online slots to satisfy their cravings. As the COVID-19 pandemic has already proved, there is not much that that deter the online slots industry.
The trade war has, without a doubt, negatively affected both economies. In the US it has meant higher consumer prices and financial hardship for farmers. In China, industrial and economic growth slowed down. Regardless, it is highly unlikely that the trade war will have a great impact on the online slots industry.