Gaming Industry supports state-level approach from Trump Administration

A predicted “hands off” approach to federal gaming regulations from the incoming Trump Administration will benefit the industry overall, according to an executive from a major national online gaming operator.

U.S. President-elect Donald Trump will largely avoid federal gaming policy in his second administration, said Rush Street Interactive CEO Richard Schwartz Monday. Speaking during Monday’s Needham Consumer Tech and Ecommerce Virtual Conference, Schwartz said Trump will support efforts for new gaming avenues, particularly around online casinos.

“I think it’s always helpful to have a president who is not opposed to gaming expansion, which is the case with President-Elect Trump,” Schwartz said.

Industry supports state-level approach

Schwartz echoed many of his colleagues’ support for the current state-by-state level approach to legalization and regulation, eschewing federal proposals. He said Trump will allow this system to continue and won’t push any significant nationwide changes.

This includes a proposal by Democrats in both the House and Senate for a sweeping sports betting bill that would restrict advertising and require sportsbook licensing certification from the Attorney General’s office. With Republicans controlling both houses of Congress and the White House, Schwartz said the bill has little potential to pass.

Without federal legislation, Schwartz said this will allow more states to pass online casino gaming. These offerings have only been approved in a handful of states but are far more lucrative for gaming operators – and state tax coffers.

Real money iCasinos, legal in seven states, generated $2 billion in operator revenue in the third quarter of 2023. Sports betting was legal in 38 states and generated $3.2 billion in revenue during that same time.

This potential for licensed online casino operators will become more apparent in 2025 when state legislatures reconvene and can address the proliferation of largely unregulated social and sweepstakes casinos, Schwartz said. The additional silver lining is the existence of these social casino sites means there is a clear argument for real money casino legalization.

 

Source: Covers.com

Preview image: Shutterstock

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