Trump’s Election and Online Gambling in the U.S.
Posted by Harry Kane on Wednesday, December 21, 2016
Given the distasteful rhetoric and fragmenting race relations that dominated the 2016 U.S. election, there are many who felt that many important economic issues were overlooked during the respective campaigns of Donald Trump and Hilary Clinton. Instead, the race for the Whitehouse descended into acrimony and sleaze, as both candidates focused on undermining the credibility of their rival.
If they had discussed core economic issues, one of the most pressing would have been the future of the online gambling market in the U.S. A bone of contention for more than a decade now, only three of America’s 50 states have legalised online gambling and turned this into a huge source of public income. Despite numerous attempts to push through a progressive gaming bill in states such as California, there remains huge resistance to an undoubtedly popular and lucrative pastime.
At First Glance, the Future for Online Gambling Seems Bleak
At first glance, Trump would not appear to have either the influence or the inclination to alter the course of online gambling in America. After all, there is a complex legal structure in the U.S. which means that each of the nation’s 50 states have sole jurisdiction and executive power when determining laws. Additionally, the 2006 UIGEA (Unlawful Internet Gambling Enforcement Act) legislation has formed a huge barrier to the widespread popularisation of the pastime, while preventing it from becoming a large-scale, federal issue.
Then we have the man himself, who spent years building and branding casinos across the length and breadth of America. While many of these land-based establishments eventually failed and Trump himself has no remaining connection to the industry, he has numerous friend in the sector who have raised their own objections to the proliferation of online gaming.
One such colleague is casino magnate Sheldon Adelson, who has opposed various bills while citing the potential social implications (although sceptics believe that his true motivation is the protection of his profitable, land based casino empire).
Reasons for Optimism: Trump’s Presidency Good for Online Gambling?
When you also consider that Trump represents the notoriously conservative Republican movement, he will be hard pressed to motivate the senate and push through any significant gambling reforms in the States.
Trump is a strong and independently minded individual, however, and one who has tremendous support from his followers. He is also a business man, and someone who will be well aware of the nations economic issues and a lack of progressive monetary policies. With the global, online gambling market currently worth $45 billion (and set to rise to $56 billion by the end of 2018), he will have already consider the potential tax revenue that America could generate by legalising the practice nationwide.
Trump has also commented previously on the inevitability of legalising online gambling in the U.S., citing progression and it lucrative nature as key factors.
The legalisation of online gaming in key states would also create jobs, which was a central message that ran throughout Trump’s campaign. This should provide hope and optimism for an industry that has struggled manfully in the face of huge opposition during the last decade, although the question that remains is whether Trump has the will or the power to reverse the 2006 seminal, UIGEA and re-establish Internet gaming as a federal-controlled law.