Published on: November 27, 2024, 01:34h.
Last updated on: November 27, 2024, 01:34h.
President-elect Trump and his team are expected to have a hands-off approach towards gaming regulations, according to Rush Street Interactive (NYSE: RSI) CEO Richard Schwartz. He believes that Trump may support gaming expansion, including iGaming.
“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,” said Schwartz at the Needham conference.
Schwartz anticipates a change in Trump’s views on gaming in his second term compared to his first term, where the Department of Justice pursued litigation that could have negatively impacted the online gaming industry.
RSI CEO Sees 2025 Potential for iGaming
With minimal interference expected from the Trump Administration on gaming regulations, Schwartz envisions opportunities for iGaming expansion in 2025.
Currently, only seven states allow iGaming, but more states could join in 2025 as they seek additional revenue sources.
“Additionally, the tax revenue from iCasinos is significantly higher than from sportsbooks, making it a profitable way for states to increase revenue,” noted Schwartz during the conference.
Speculation suggests that Illinois and New York could be potential candidates to legalize internet casinos in 2025.
Tribal Challenges in iGaming
While commercial operators may not face strict gaming regulations under the second Trump Administration, tribal gaming entities could experience different regulatory conditions, particularly with regard to iGaming.
Some experts believe that Trump’s appointment of former North Dakota Gov. Doug Burgum as Secretary of the Interior could impact tribal gaming regulations, as Burgum has been hesitant about expanding iGaming.
“A legal pathway for broad expansion of gaming beyond reservations does not exist,” Burgum stated in a 2022 press release.
Supporters of tribal iGaming argue that the Indian Gaming Regulatory Act (IGRA) permits internet casinos, as long as the wagering occurs on tribal lands and winnings are paid out from those properties.