Rush Street CEO: Trump Government Could Help US Gaming Market
The gaming industry in the US is expected to benefit from a predicted "hands-off" approach to federal gaming regulation under the incoming administration of President-elect Donald Trump. That's the conclusion of Richard Schwartz, the CEO of Rush Street Interactive, who shared his outlook during the Needham Consumer Tech and Ecommerce Virtual Conference on November 26.
Rush Street Interactive CEO Richard Schwartz in a company photo. (Source: Rush Street Interactive)
LISTEN TO THIS ARTICLE:Schwartz expressed that having a president who is not opposed to the growth of gaming could be a significant advantage. He highlighted that the Trump administration is unlikely to push for federal oversight or sweeping national policies, preferring to let states maintain their existing authority over gaming legalization and regulation. This approach aligns with the industry's preference for state-by-state decision-making, which offers flexibility and tailored solutions for operators.
Related: New Jersey Online Casinos Post Higher Revenues Than RetailConcerns over potential federal sports betting legislation introduced by some Democratic lawmakers seem unfounded in the current political climate. The proposed measures, which aim to limit advertising and implement a federal licensing framework, are unlikely to advance with Republicans in control of Congress and the presidency. The absence of federal restrictions may open the door for states to explore new opportunities, particularly in the lucrative online casino market.
Online casinos, which are currently legal in seven states, have proven to be a strong revenue generator. In the third quarter of last year, they recorded revenue of $2 billion, significantly contributing to state tax revenues.
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Schwartz pointed out that online casinos often outperform sportsbooks in terms of profitability, with a majority of tax revenues in states that allow both coming from casino platforms. This economic impact is expected to encourage more states to consider online casino legalization in the coming years.
The rapid rise of unregulated gaming platforms is also fueling discussions about real-money online casino regulation. Schwartz suggested that the prevalence of these platforms strengthens the case for legal online casinos, as states seek to create a controlled and tax-generating framework. Lawmakers are expected to revisit this issue in upcoming legislative sessions as they weigh the benefits of expanding legal gaming options.
Schwartz's optimistic outlook contrasts with the uncertainties faced during Trump's first term, when the Justice Department issued a controversial interpretation of the Wire Act of 1961. This interpretation, which broadened the act's scope beyond sports betting to cover virtually all online gambling activity.
A legal challenge eventually resulted in a 2021 court decision reaffirming that the Wire Act applies only to sports betting. This was the catalyst for the return of online gaming; however, the process of integration has still been relatively slow.
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