Hypothesizing Election Impact on U.S. Online Gambling
It’s general election time in the U.S. and the claims are already out there that this is the most important election in our lifetimes. To be clear, this might well be true now and going into the future. There appears to be a lot on the line regarding which direction the country will be heading.
It’s also an important election for the U.S. online gambling industry with 34 Senate seats and all 435 Congressional seats up for grabs. The importance of the election also flows down to the state level where elections are sure to have consequences for the U.S. sports betting and iGaming (online casinos) communities.
With the election less than a month away, I want to take a look at how this election cycle could affect the future of gambling expansion and online gambling in America.
Is Federal Intervention on the Horizon?
When the SCOTUS released the nation’s ban on sports and online betting in May 2018, they did so under the guise that gambling should be a state issue. That has propelled 39 states to pass sports betting legislation while 7 of those states have also passed iGaming legislation.
What’s shocking is there are indications that federal lawmakers are looking to intervene in the gambling industry due to the perception of increasing problem gambling issues. This has been offered as the reason that Sen. Richard Blumenthal of Connecticut and Rep. Paul Tonko of New York have presented the Safe (Supporting Affordability and Fairness with Every) Bet Act in their respective houses.
If passed, the bill would set standards by which the entire U.S. online gambling industry would have to operate. The focus would fall on potentially predatory advertising activities and problem gambling resources.
At this time, there is no sense this bill will pass because:
- Many legislatures support the rights of states to handle their own legislation
- It’s a Presidential election cycle – distraction
- Federal bills are hard to pass due to partisan politics
Whether the Safe Bet Act passes or not is of little consequence right now. What the presentation of this kind of legislation does is indicate that federal lawmakers are seeking to control an industry they lost control of in 2018.
How Might the Elections Affect Online Gambling at the State Level
Since gambling is a state-controlled issues, every election cycle holds the potential to influence how lawmakers might handle the industry. Remember, the legality of sports betting (retail and or online) pretty much been resolved in 39 states with the passing of the required legislation. That leaves 11 states where questions still exist. Meanwhile, the iGaming industry has a lot more work to do as only these 7 states have passed the required legislation:
- Connecticut
- Delaware
- Michigan
- New Jersey
- Pennsylvania
- Rhode Island
- West Virginia
Elections have consequences when it comes to partisan issues like gambling, online and otherwise. Supporters and naysayers will always line up to battle over the legality of gambling in various forms. Could this cycle’s election have consequences for the U.S. online gambling industry? Let’s take a look at 6 states where sports betting and or online casino gambling have been in the news in recent months.
Note: California has again failed to get a meaningful sports betting / iGaming initiative on the ballot for November 5. Efforts are underway to get something ready for the November 2026 mid-term elections.
Arkansas
In Arkansas, a constitutional amendment passed in 2018 authorizing the licensing of four brick-and-mortar casinos. Three have been built and are currently operating while the 4th target area of Pope County has failed to move forward. On the November 5th ballot, voters will again be asked to approve having a retail casino in that county, barring a new proposed amendment that would restrict Pope Country from a license.
This kind of legislation matters because the opening of retail casinos is often a precursor to the passing of online gambling legislation.
Georgia
Getting sports betting and online gambling legislation passed in Georgia has been nearly impossible to date. The issue seems to lie in the Senate where Republicans have significant control yet find themselves divided on gambling issues. There is a possibility that a new mix of Republican Senators could lead to more support for various forms of gambling legislation in 2025.
Indiana
Online and retail sports betting are alive and well in Indiana. However, online casino legislation proves difficult in passing due to concerns over corruption. The good news is this election cycle could result in legislators who would get the issue resolved favorably for residents. Both Governor candidates have indicated they would sign online casino gambling legislation.
Missouri
To get gambling expansion passed in Missouri, the state’s constitution needs to be amended. That referendum is on the 2024 ballot and seemingly has big support among voters. Assuming it passes, the right mix in the state Senate and House could deliver retail and online sports betting in 2025. iGaming might take a bit more work that could bleed over to 2026.
New York
In 2024, online casino gambling became a hot issue among NY lawmakers. However, it has become clear nothing is going to happen until the state passes retail casino legislation in Albany and Manhattan. Meanwhile, online casino gambling proponents, namely Sen. Joseph Addabbo and Assembly-member Gary Pretlow, are certain to hold their seats and continue beating the iGaming drum in 2025.
Virginia
Gambling expansion has been a hot-button in Virginia for a couple of years now. Keeping in mind that retail casino gambling is often the precursor to online gambling activities, it has been frustrating for residents to see state lawmakers can’t get something done. The residents of Virginia City are taking matters into their own hands. A city-specific referendum to bring a retail casino to the city is on the ballot. If it passes, it might open up the state for further gambling expansion.
The potential federal intervention in the gambling industry is quite intriguing! 🤔