People expect the Trump administration to take a relaxed approach to gaming rules, which industry big-shots think could help the sector.
Richard Schwartz Optimistic About Online Gaming Expansion Under Trump
Richard Schwartz, the CEO of Rush Street Interactive, sounded upbeat about online gaming’s chances under Donald Trump’s watch during a virtual meeting about consumer tech and online shopping on November 25.
Schwartz thinks Trump will not put federal limits on the gaming industry, but instead will let states decide on making it legal and setting rules, as reported by Covers. He stressed that the government staying out of it could open doors to further grow online casinos, which still make the most money in the market.
People in the gaming industry support the current setup where each state can decide its own gambling rules. This system where states make their own choices, would stay the same if Trump were in charge, according to Schwartz. The Trump administration is expected to avoid federal plans like the bill Democrats proposed to tighten rules on sportsbook ads and licenses. Since Republicans run Congress now, this bill does not have much chance of progressing.
Online casinos show great promise for growth. Seven states allow them now, and they brought in $2 billion for operators in Q3 2023. At the same time, sports betting made $3.2 billion across 38 states in the same time frame. Schwartz highlighted that online casinos create more tax money than sportsbooks. This gives states a good reason to think about making them legal. He also talked about the increase in uncontrolled social and sweepstakes casinos. Their spread might push lawmakers to focus on legalizing real-money online casinos.
Adelson’s Passing Opens Doors for Online Gambling in Trump’s Second Term
This positive view stands in sharp contrast to Trump’s first term. During that time, his Justice Department gave a new meaning to the Wire Act of 1961. They said it applied to more than just sports betting. This put online gaming at risk. However, a court ruling in 2021 brought back the old interpretation. This narrowed the scope of the Wire Act and helped the industry find its footing again.
Experts think Sheldon Adelson’s fierce opposition to online gambling will no longer affect federal policy. After Adelson died in 2021, Las Vegas Sands — now led by his wife, Miriam Adelson — has turned its attention to other projects, like a planned casino resort in Texas. Though Miriam Adelson remains powerful, insiders say her focus on state-level projects reduces her impact on federal gambling policy.
Sam Nunberg, who used to advise Trump, said that the wide acceptance of online sports betting and casino gambling makes a federal ban unlikely. As states rely more on gambling income, the industry looks set to grow with Trump’s second term.
