President Donald Trump has signed an executive order confirming a deal to have TikTok remain in the US.
However, marketers believe this move could “stifle” avenues around engagement for gaming companies using the platform and push them towards other channels such as YouTube and Instagram.
Currently, casinos and sports betting operators are allowed to advertise on TikTok in the US if they work with sales representatives from the company and follow its guidelines.
For iGaming operators, TikTok has been utilised as a key avenue to elevate crash game engagement and introduce new titles to their audience through the use of streamers.
In a press conference on Thursday (25 September), Trump said he had come to an agreement with China’s president, Xi Jinping, that would separate the social media channel from its parent company, ByteDance.
He also confirmed the deal would address the national security requirements listed in the 2024 law.
Under the new deal, US investors will take control of the majority of TikTok operations in the market and retrain a licensed copy of the app’s algorithm using US user data.
The American companies will own 80% of the spin-off version of TikTok, with software giant Oracle overseeing security and providing cloud service.
White House officials said that ByteDance and Chinese investors – which will own less than 20% – will not have access to US user data.
US TikTok could turn into its own ‘echo chamber’
Since Trump took office in January, he has repeatedly delayed the nationwide ban on TikTok, extending it most recently for the fourth time to 16 December.
But this move to have an US-only version of the app could see marketers within gaming moving away from the platform in favour of other channels.
Paul Sheldon, senior creative at advertising agency Golley Slater, said: “TikTok’s mass appeal has always been its magic algorithm and its powerful discovery engine. That global cross-pollination of trends – global being the keyword – which we’ll sadly lose with this isolated US version.
“Cutting off the international vibes that spark viral gaming challenges and new game discovery could stifle what makes the platform great for our US friends.
“The new US algorithm might turn into its own echo chamber, amplifying American content but potentially making feeds repetitive and less innovative for gamers.”
Sheldon added that while for some US brands and creators, it could boost visibility, ultimately they “risk losing the global reach they once had” and instead push gamers towards others channels such as YouTube.
“Other platforms may become niche community homes 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 older platforms from Meta,” he said.
Sheldon’s colleague, Emma Thompson, head of agency, highlighted: “These changes won’t just impact gaming; they’ll affect all creators and social commerce. The new structure risks placing a veil over US content, leading to increased restriction and censorship.”
US to hold 6 out of 7 seats on board
Mike Craddock, CEO and co-founder of social media shop NewGen, said: “TikTok has become one of the most powerful discovery platforms, where top-of-funnel awareness and creator-led storytelling are key to standing out.
“Any disruption would force marketers in this space to adapt quickly whether that’s reallocating spend into YouTube shorts, Instagram reels, or exploring emerging creator-driven communities where audiences are increasingly active.
“The wider lesson here is that TikTok is hugely influential, but long-term success comes from future-proofing strategies and balancing activity across multiple platforms, creators, and community touchpoints rather than putting all your eggs in one social media basket.”
The new US version of TikTok will be valued at $14bn, according to JD Vance. A figure significantly lower than ByteDance’s overall valuation, which stands at around $330bn.
It will be led by seven board members made up of directors from cybersecurity and national security firms – six of whom will be American, the White House said.
The deal expands on the existing arrangement between Oracle and TikTok, with the former already storing the 170 million US user data on its servers under Project Texas.
Owner of media group Fox Corp, Rupert Murdoch and Dell founder Micahel Dell are among the other investors in the social media platform.
A spokesperson for ByteDance said earlier in the week: “We thank President Xi Jinping and President Donald Trump for their efforts to preserve TikTok in the United States. ByteDance will work in accordance with applicable laws to ensure TikTok remains available to American users through TikTok US.”
