The CEO of Rush Street Interactive (RSI), a Chicago-based sportsbook and online casino company, has expressed optimism about the reelection of Donald Trump as a catalyst for the expansion of iGaming in the United States. Richard Schwartz, the CEO of RSI, believes that President Trump will support the development of “new gaming avenues, particularly around online casinos.” Schwartz made these comments during the 4th Annual Needham Consumer Tech/Ecommerce Virtual Conference.
Schwartz predicts that the Trump administration will steer clear of federal gaming policy and instead focus on supporting the iGaming industry. He believes that having a president who is not opposed to gaming expansion, like President-Elect Trump, can be beneficial for the industry. Schwartz emphasized that iGaming is more lucrative for gaming operators and state tax revenues compared to sports betting.
Currently, iGaming is legal in only seven states, while sports betting is legal in 38 states. Despite this, iGaming generated $2 billion in operator revenue in Q3 2023, compared to $3.2 billion for sports betting. Schwartz is hopeful that 2025 will be a turning point for iGaming, as state legislatures are increasingly targeting unregulated social and sweepstakes casinos. He believes that the presence of unregulated operators provides state lawmakers with the clarity and motivation to legalize real money online casinos.
Schwartz also highlighted the significant tax revenue that states can generate from iGaming. He noted that when an iCasino is added to a state with legal sports betting, about three-quarters of the taxes come from iCasino, making it a profitable way to raise taxes.
The outlook for widespread iGaming legalization in 2025 appears promising, especially with Republicans holding power in both houses of Congress and the White House. The return of Trump has seemingly derailed a sports betting bill that aimed to give federal control over gambling, signaling that a federal ban on iGaming is unlikely. Former Trump advisor Sam Nunberg echoed this sentiment, stating that there will never be a federal ban on iGaming due to the significant revenue it generates for states.
Overall, the reelection of Donald Trump is viewed as a positive development for the iGaming industry, with industry experts like Richard Schwartz optimistic about the potential for expansion and legalization in the coming years.