The slots are still spinning on casino floors across the country. But behind the scenes, the companies that build those machines are fighting a quieter and costly battle. A year of tariffs punched deep holes into the budgets of Nevada’s top slot manufacturers, and the money they are owed still has not arrived.
Tariffs Hit the Bottom Line Hard
The numbers tell the story loud and clear. Konami, one of the biggest names in slot machine manufacturing, reported a staggering 50.4 percent decline in profit for its Gaming and Systems segment in the fiscal year ending March 2026. The company pointed directly to U.S. tariff measures as a primary reason for the sharp drop. Tom Jingoli, president and chief operating officer of Konami Gaming, did not hold back when speaking at a recent Las Vegas gaming industry conference. “A significant number we’re trying to recoup,” he said. The pain runs deeper than just numbers on a spreadsheet. Because slot machines operate in a heavily regulated environment, manufacturers cannot simply swap out expensive imported components for cheaper alternatives. Every change to a circuit board or a display monitor requires regulatory approval across multiple markets, making fast pivots nearly impossible. “Being in a highly regulated environment, a lot of the parts and hardware we have to secure are subject to regulatory approval,” Jingoli explained. “Those things all have to be tracked.” Konami also diversified its supplier base to avoid depending on any single source for parts. That strategy protects against supply disruptions but eliminates the volume-based pricing discounts that come with single-source contracts, driving costs even higher.
Companies Scramble to Protect Thin Margins
When the tariffs landed, manufacturers had to move fast. Passing added costs to casino operators was simply not a real option in a fiercely competitive market where return on investment drives every purchase decision. **David Lopez, president and CEO of AGS, made the call to absorb every dollar of added tariff expense rather than raise prices for casino customers.** That decision protected customer relationships but created a mounting financial burden the company had to manage through other means. AGS also ran into a political problem with its Canadian business. When Canadian officials urged buyers to avoid American-made products after political tensions rose between the two countries, AGS rerouted its supply chain and began building equipment at its facility in Mexico, shipping finished machines north to Canadian customers to keep those sales alive. Konami chose a different workaround, setting up assembly operations in Canada to reduce tariff exposure. It softened the blow, but establishing that operation carried its own price tag. Ainsworth Game Technology walked into the tariff storm in a particularly difficult position. In 2024, the company made what seemed like a sound business decision, centralizing all of its production in Las Vegas and shutting down its manufacturing operation in Australia. Then the tariffs arrived in 2025. At that moment, roughly half of everything Ainsworth built in Las Vegas was being re-exported to international markets. “That was a big wake-up moment,” said Michael Comstock, Ainsworth’s acting CEO. “We’re not incentivized to produce in the U.S. because of the tariff costs.”
Waiting on Refunds That Have Not Come
In February 2026, the U.S. Supreme Court ruled 6 to 3 that the Trump administration overstepped its authority by imposing broad global tariffs under the 1977 International Emergency Economic Powers Act. Chief Justice John Roberts, writing for the majority, was direct: the constitutional power to impose tariffs belongs to Congress, not the president. The ruling came in the case of Learning Resources, Inc. v. Trump, after years of legal challenges from businesses across multiple industries. The ruling was a legal victory. But for slot manufacturers, the financial relief has been painfully slow. Here is where things stand for the industry right now:
- Companies are still waiting to determine when IEEPA refunds will reach what accountants classify as a “probable” threshold before the funds can be recorded on the books
- Some companies have started to see small refunds trickle in, but most are hesitant to count on them given how quickly the situation can change
- Konami is pursuing refunds both directly from the government and through third-party vendors who originally sourced parts for its machines
- Finance and accounting teams across the industry are spending enormous resources just tracking and managing the refund claims process
“We haven’t seen the refunds at the level we thought we were,” Jingoli said. “Obviously, it’s turning political like everything else.” Lopez described the process as “an accounting nightmare.” Even when money does begin to flow back, companies must trace exactly where costs originated, which vendors were involved, and how to properly record every transaction. The broader legal landscape also remains unsettled. After the Supreme Court struck down the IEEPA tariffs, the Trump administration moved quickly to pursue new levies under different legal authorities. Daron Dorsey, president and CEO of the Association of Gaming Equipment Manufacturers, said at the conference that tariffs are not over and nobody knows when they will end.
Nevada Is Still Home, and That Is Not Changing
Despite the financial pressure and supply chain chaos, not one executive at the Las Vegas conference suggested moving operations out of Nevada. Nevada Gaming Control Board Chair Mike Dreitzer called these challenging and dynamic times for the industry. He said the Board’s goal is to support licensees who need to adapt their operations while protecting the integrity of the regulatory structure Nevada has built over decades. Dreitzer confirmed that manufacturers came to him directly when they needed to make component changes or adjust how they operate under their existing licenses, and his response has been to find ways to help without loosening the standards the state is known for. Jingoli put Nevada’s standing plainly. “We can build slot machines anywhere,” he said. “We’ve chosen Nevada to be our home. Nevada has been the gold standard from a regulatory standpoint and a gaming standpoint for all the years we’ve been here.” He added that every major slot manufacturer maintains some form of manufacturing or final assembly in Nevada, and the state’s rules carry a trickle-down effect across nearly every other jurisdiction in the world. That loyalty to Nevada carries weight far beyond the state’s borders. Gaming regulators in other states and countries use Nevada’s standards as a benchmark when building their own oversight frameworks. The strength of Nevada’s regulatory reputation directly supports the credibility of every product these companies sell, everywhere they sell it. The financial wounds from a year of tariffs are still raw, the refund process is proving slow and politically tangled, and the supply chain decisions that seemed smart 18 months ago are now being second-guessed in every boardroom. But Nevada’s slot manufacturers are not walking away from the state that helped define this industry, even as they fight through one of the most disruptive trade environments in a generation. The bill is still unpaid, the refunds are still uncertain, and the path forward depends on how fast the government moves and how patient these companies can afford to be. What do you think? Should the government fast-track tariff refunds for U.S. manufacturers? Share your thoughts in the comments below.
