How the TikTok deal will affect iGaming: analysts' opinion

President Donald Trump signed an executive order, effectively allowing TikTok to operate in the US.

However, most marketers believe that this move could negatively impact the ability of gaming companies that use TikTok to attract users. Accordingly, this could prompt them to switch to other platforms, such as YouTube and Instagram.

US iGaming operators have used TikTok as their primary channel for effectively attracting users to crash games to showcase new products. However, they now only have the opportunity to promote themselves on TikTok if they cooperate with the company’s sales representatives and follow its recommendations.

About the deal

On September 25, at a press conference, Trump announced that he had reached an agreement with Chinese President Xi Jinping to separate TikTok from its parent company, ByteDance.

He confirmed that the deal would meet the national security requirements set out in the 2024 law.

Under the new agreement, American investors will gain control over most of TikTok’s operations in the market. American companies will own 80% of the separated version of TikTok, while Oracle will control security and provide cloud services.

White House officials said ByteDance and Chinese investors, who will own less than 20%, will not have access to US user data.

Expert opinions 

Paul Sheldon, senior creative director at advertising agency Golley Slater, said: “TikTok’s mass appeal has always been its magical algorithm and powerful search engine. It’s the global cross-pollination of trends — the key word here being ‘global’ — that we will sadly lose with this isolated US version.

Cutting off the international vibes that drive viral gaming challenges and new game discoveries could stifle what makes the platform great for our American friends.

The new US algorithm could turn into its own echo chamber, amplifying US content but potentially making the feed repetitive and less innovative for gamers“.

Sheldon added that while this may increase visibility for some American brands and creators, they ultimately “risk losing the global reach they once had” and instead push gamers to other channels such as YouTube.

“Other platforms may become niche communities for gamers looking for fresh ideas, and it’s likely that younger gamers will move to other video platforms such as Snapchat and Triller rather than what they consider to be Meta’s old platforms,” he said.

Sheldon’s colleague, Emma Thompson, head of the agency, emphasized:

“These changes will affect not only gaming, but all creators and social commerce. The new structure risks imposing a veil on American content, leading to increased restrictions and censorship.”