Macau-based gaming equipment supplier LT Game, a subsidiary of Paradise Entertainment, is leaving the US because it says it cannot compete due to the high tariffs imposed by the Trump Administration. While LT Game’s presence in the US market has been relatively minor, the move underscores the broader implications that tariffs can have on international gaming suppliers. At the same time, those with a US base could take advantage of the situation.
LT Game’s suspension of sales to the US could be temporary if the situation changes. During the official launch of the company’s new production line in Macau, Chairman and Managing Director Jay Chu said that the tariffs, which are over 100%, make it hard for the company to compete with US-based manufacturers. He added that LT Game would turn its focus to Asia and Europe. Still, he remained optimistic that it could sell its products again in the US.
Major gaming suppliers could remain unaffected
While LT Game retreats, major gaming suppliers with established US operations appear largely insulated from similar pressures. Many big names like IGT and Light & Wonder have their head offices in Nevada. Even global competitors like Konami and Aristocrat Leisure maintain a foot on the ground in the US. Additionally, many operate diversified global supply chains, allowing them to navigate trade disruptions more effectively.
A recent investor note by Jefferies Equity Research analyst Kai Erman on Aristocrat Leisure highlights this. According to Erman, the company has diversified its supply chain since the pandemic, and about 18% comes from the US. That ranks the US second for the company, only behind South Korea, with 29%. Aristocrat also maintains two of its four assembly centers in the US, located in Las Vegas and Tulsa, Oklahoma.
Erman also reassured investors that Aristocrat’s digital products, including the famous Buffalo slot, would remain unimpacted. However, the analyst noted that the Canadian market would have a small impact on the company.
Last month, the province of Alberta banned the import of slot machines and video lottery terminals (VLTs) from US-based suppliers. That includes Aristocrat.
Broader industry impact
While many gaming suppliers might not feel a significant economic impact, LT Game’s exit sheds light on the larger impact tariffs can have on non-US gaming companies. Following the tariff announcement, several Hong Kong-listed gaming giants, such as SJM Holdings, Melco International, and Galaxy Entertainment, experienced stock declines of over 10%. Similarly, the Macau subsidiaries of US-based companies, including Sands China, Wynn Macau, and MGM China, saw similar drops.
Operators outside Asia were also impacted. While less severe, some London-based companies also experienced stock declines. That includes Entain, the co-owner of BetMGM Casino and Sportsbook, Evoke (formerly 888 Holdings), and Flutter International, parent of FanDuel Casino and Sportsbook.
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