The gaming industry is bracing for what could be a more lenient regulatory environment under President-elect Donald Trump’s second term, with executives predicting a favorable climate for growth—especially in the realms of online casinos and sports betting. Richard Schwartz, CEO of Rush Street Interactive, one of the largest online gaming operators in the United States, has stated that the incoming administration’s “hands off” approach to federal gaming regulations will significantly benefit the sector.
Schwartz made these comments during the Needham Consumer Tech and Ecommerce Virtual Conference on November 26, 2024, offering a preview of what the gaming industry might expect in the years ahead. His optimistic outlook reflects a broader industry belief that the new administration will allow the gaming sector to thrive with less interference.
A Hands-Off Approach
Schwartz pointed to Trump’s record on gaming policy, which has generally been supportive of expansion, as a reason for his optimistic forecast. Unlike some previous administrations that took a more active role in regulating gaming, Trump is expected to take a more hands-off approach. This would likely mean fewer federal mandates and more state-level decision-making, which many in the industry view as a positive development.
“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 during the conference. This sentiment is echoed by many industry leaders who have long advocated for less restrictive federal gaming policies.
Online Casinos and Sports Betting: Key Areas of Growth
Under Trump’s leadership, the gaming industry expects significant growth in online casinos and sports betting, two areas that have seen explosive growth in recent years. Schwartz emphasized that Trump’s willingness to support these sectors—without imposing stringent regulations—will create an environment ripe for innovation and expansion.
The United States has already seen a wave of states legalizing sports betting following the repeal of PASPA (Professional and Amateur Sports Protection Act) in 2018. Online gaming, including casino games, has also gained traction in several states, with more expected to follow suit. As these industries continue to grow, many believe that Trump’s lack of opposition to gaming expansion will open the door for even more states to legalize and regulate online casinos and sports betting.
Industry Growth and Jobs
This growth could have significant economic benefits, not only for the gaming operators but for the broader economy. The gaming industry is a major job provider, with thousands employed in various roles from tech to customer service to regulatory compliance. Schwartz highlighted how an environment of relaxed federal oversight could fuel expansion, leading to more jobs and increased tax revenue for states that choose to legalize online gaming.
As the sector grows, it could also have a ripple effect on other industries, including tech, entertainment, and media. Online gaming companies often partner with content providers, sports leagues, and tech firms to create engaging experiences for players, leading to new business opportunities across multiple sectors.
Regulatory Shifts Under Trump
While the Trump administration may be less involved in regulating gaming at the federal level, it is important to note that individual states will still play a major role in shaping the future of online gaming. Many states have already taken steps to legalize and regulate online gambling, but others remain cautious or resistant to such moves.
Schwartz pointed out that while federal intervention will be minimal, state-level regulation will continue to be a critical aspect of the industry’s growth. He emphasized that a “hands-off” federal approach should allow states to implement their own policies without the worry of federal overreach.
“It’s about allowing states to make decisions based on what they think is right for their own economy and their own residents,” Schwartz said, reinforcing the belief that states are better positioned to make gaming decisions based on their unique circumstances.
A Win for Rush Street Interactive and the Industry
For Rush Street Interactive, the potential for a more favorable regulatory environment is a key part of its growth strategy. The company, which operates popular online gaming platforms in several states, has long advocated for expanded gaming opportunities and believes that Trump’s stance will continue to support these efforts.
Schwartz’s comments at the Needham conference align with the company’s broader expectations of a more conducive regulatory environment under Trump’s leadership. The CEO’s remarks signal confidence that Rush Street Interactive—and the gaming industry as a whole—will continue to expand as states embrace new opportunities for revenue and growth.
