Sport Betting Prospects Under a Trump Presidency

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Wednesday, December 28th, 2016 | Written by Stephen Smith

There are a lot of question marks hovering over what the Trump administration will have on its agenda for 2017. While there have been some indications that hint at where Trump will fall on certain issues, one area of interest to the gambling industry is what the future of sports betting may be under the 44th President of the United States. Some believe that sports betting may have a chance to grow over the next 4 years, while others believe Trump will maintain the status quo. Let’s take a look at the arguments behind each position.

Reasons For Sports Betting Expansion

– State and federal governments must generate more revenue

With the federal deficit at $20 trillion and many states struggling to balance their budgets, it’s clear that there is an urgent need to generate more revenues. According to a report issued by the National Basketball Association, the current black market sports betting business stands at an estimated $380 billion in annual revenue. Therefore, if sports betting was brought out of the shadow, the state and federal governments could reap some much-needed tax revenues to help with their budget problems.

– Trump is casino-friendly

Trump may not have been a casino success story, but he has owned and operated casinos; therefore, he clearly does not object to their existence, and is generally viewed by the industry as being pro-gambling. While sports betting may not be one of his pet issues, some believe Trump is unlikely to oppose its legalization if it was proposed on Capitol Hill.

– The timing may be right

Daily-fantasy sports (DFS) has overcome the controversy initially associated with it, and has been legalized and regulated in numerous states across the U.S. Many analysts now believe that favorable views of daily fantasy sports betting may help create momentum that will finally bring about a major push for sports betting legislation. Furthermore, NBA Commissioner, Adam Silver, is also openly calling for its regulation.

Reasons Sports Betting Laws May Remain Unchanged

– Republicans may pose a roadblock

In order for sports betting to be legalized in any state or at the federal level, existing federal laws will need to be repealed or amended. The Republicans have control of both the House and the Senate in 2017, and it doesn’t seem likely that there will be many champions of sports betting on Capitol Hill. In fact, most legislation that has been pro-gambling has been introduced by Democrats, while Republicans seem too concerned about losing the support of the religious right to openly support federal pro-gambling laws.

– The Attorney General is likely not gambling-friendly

Jeff Sessions has been nominated as Attorney General under Trump, and is likely to be confirmed when the President-elect is sworn into office in January. He is very conservative on social issues and will ultimately be in charge of how the Wire Act is currently being enforced. Therefore, some people fear that he will reverse the decision of previous Attorneys General allowing online gambling to take place in the United States, which would end up making online casinos illegal across the country. In that kind of climate, it’s hard to see how sports betting of any kind could exist.

AGA Optimistic for Future

In the meantime, the American Gaming Association (AGA) appears optimistic that a Trump administration will prove a huge boon for the industry, and will ultimately lead to more acceptance of gambling among mainstream audiences. As the organization’s CEO Geoff Freeman commented recently:

“We have a former casino owner elected as the next president of the United States. We are better positioned than at any time to achieve our objectives.”

In fact, the AGA has already sent a letter to Trump providing him with an update on the industry, and giving him a list of its priorities for the future. Needless to say, the AGA carries a lot of weight as it represents a $240 billion industry that each year generates $38 billion in tax revenues, as well as offering employment to 1.7 million people across 40 US states.

As Freeman explains, the gambling industry is “every bit as patriotic as the business of building airplanes, automobiles or any other product of American industry.” Expressing his positive outlook for the future, Freeman stated:

“We are entering a perfect storm (for sports betting). We are optimistic that states and tribes will soon have the option to choose if they wish to regulate sports betting in the same way (they) regulate other casino gaming products.”