RSI Cheers Trump's Re-Election as a Boon for iGaming Expansion
U.S. Online Casino Magnate Praises Trump's Role in Accelerating iGaming Development
Regarding the reelection of the volatile real estate mogul-turned-politician, Donald Trump, the CEO of Chicago's prominent sportsbook and online casino company, Rush Street Interactive (RSI), celebrates it as a catalyst for the expansion of US iGaming.
The Trump Administration's Embrace of "New Gaming Avenues"
According to Covers.com, RSI's Richard Schwartz gleefully declared on Monday that he anticipates the new administration to endorse the development of "novel gaming avenues, specifically focusing on online casinos." In a talk during the 4th Annual Needham Consumer Tech/Ecommerce Virtual Conference, Schwartz communicated the Trump administration would generally sidestep federal gaming policy and boost the iGaming sector. The CEO expressed his relief at having a president who is not hostile towards gaming expansion, like the President-Elect Trump.
The Case for iCasino
In contrast to sports betting's legality in 38 states, online casinos are legal in only seven. Despite generating $2 billion in operator revenue over Q3 2023 compared to $3.2 billion for sports betting, iGaming lags behind. Schwartz, however, believes that iGaming is "immensely more profitable for gaming operators - and state tax coffers."
Optimistic for 2025, Schwartz anticipates next year to be a paradigm shift for the vertical, given the growing interest of state lawmakers towards regulating unregulated social and sweepstakes casinos. According to Schwartz, these unregulated operators give lawmakers the clarity and motivation to pass real money casino legislation by 2025.
Schwartz asserts, "The fact that offshore operators are draining substantial tax revenues from states without online casino regulations provides a compelling reason to ramp up efforts on iCasino." Moreover, states that legalize iCasino are said to derive three-quarters of their gaming tax revenue from iCasino versus sportsbooks.
Saying Goodbye to Federal Ban Fears
The forecast for wide-scale iGaming legalization by 2025 looks promising due to Trump's return having seemingly pulverized a sports betting bill designed to seize control from the states' hands. Now that the Republicans hold power in both houses of Congress and the White House, former Trump advisor Sam Nunberg predicts, "There will never be a federal ban." In the words of Nunberg, "The states are gorging themselves on revenue from it."
However, the Trump administration has not yet introduced any specific executive orders or policies pertinent to online casinos or iGaming legislation. Experts suggest that Trump's administration's broader pro-crypto stance and efforts to provide a clearer regulatory framework may indirectly impact the iGaming industry as these platforms increasingly rely on cryptocurrencies and blockchain technology to improve user experience and compliance.
In brief, while the Trump administration has not expressly targeted online casinos or iGaming expansion in its policies, his supportive stance on digital assets and blockchain can indirectly contribute to creating a more favorable regulatory climate for online casinos that embrace these technologies. However, it's important to note that as of now, no direct federal policies or changes regarding online casinos or iGaming are documented.
The Trump Administration's stance on digital assets and blockchain technology could pave the way for a more favorable regulatory climate for online casinos that incorporate these technologies. Richard Schwartz, CEO of RSI, anticipates the new administration to endorse the development of novel online casino avenues, as the Trump Administration may sidestep federal gaming policy and boost iGaming.
