Key Points
- U.S. tariffs and raw material costs led to a 22.5% revenue drop in Konami’s gaming division for Q2 2025, recording a JPY166 million loss.
- Konami plans to counter challenges with new Dimension cabinets and titles like “Crazy Stuffed Coins” while maintaining stable sales in North America and Australia.
- Tariffs may raise costs for U.S. casino operators, potentially increasing betting fees or delaying new gaming equipment rollouts.
On July 31, 2025, Konami Group Corp announced that U.S. tariffs and rising raw material prices led to a 22.5% year-on-year revenue drop in its gaming and systems division, including casino equipment, for the three months ending June 30.
Revenue fell to JPY7.51 billion (US$50.2 million) from JPY9.70 billion, with a JPY166 million loss compared to a JPY1.28 billion profit in 2024.
You’re seeing tariffs reshape the $72 billion global gambling market, affecting equipment suppliers like Konami.
Why Tariffs Impacted Konami’s Performance
Konami cited U.S. tariff measures and higher raw material costs as key factors disrupting shipment plans and profitability. Despite stable North American and Australian markets, the gaming segment, which includes slot machines and the Synkros floor-management system, struggled.
The Dimension 49 and 27 slot cabinets and “Falling Coins Link” series saw steady sales, but tariffs created a challenging environment. For you, this highlights how trade policies can disrupt betting equipment availability and costs.
Impact on Konami and the Industry
The gaming division’s loss contrasts with Konami’s group-wide revenue growth of 7.7% to JPY96.96 billion and a 3.5% profit increase to JPY19.83 billion.
Konami plans to counter challenges by enhancing its Dimension cabinet lineup and developing new game titles like “Crazy Stuffed Coins.” The tariff impact may raise costs for casino operators reliant on Konami’s equipment.
For you, this could mean higher gaming fees or delays in new machine rollouts at betting venues.
Challenges and Public Response
Tariffs, combined with a 45% global unregulated gambling market, complicate supply chains and costs for equipment providers.
Public sentiment reflects concerns over rising gaming hardware prices, with some noting broader industry risks, as seen in tabletop gaming’s tariff-related profit margin issues. Konami’s focus on innovation aims to maintain competitiveness.
For you, this suggests potential price hikes in gaming experiences but also new, innovative slot offerings.
Broader Implications for the Gambling Market
The $71.8 billion U.S. gambling market faces ripple effects from tariffs, potentially increasing costs for casino operators and players.
Konami’s recent UAE vendor license signals diversification, but U.S. tariff pressures could limit growth in key markets.
The industry may see more firms pivot to regions with fewer trade barriers. For you, this indicates a shifting market where betting costs may rise, but new regions could offer fresh gaming opportunities.
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