Rush Street Interactive CEO Richard Schwartz anticipates minimal gaming regulation changes under Trump's potential second term, suggesting a favorable environment for gaming expansion, particularly in the iGaming sector.

Speaking at the Needham Consumer Tech and Ecommerce Virtual Conference, Schwartz expressed optimism about Trump's stance on gaming, contrasting it with his first term when the Department of Justice's Wire Act interpretation threatened online gaming operations.

The Supreme Court's PASPA ruling during Trump's first term was significant, but his Justice Department's broad interpretation of the 1961 Wire Act posed challenges for internet casinos, lotteries, and online poker. A 2021 federal court ultimately limited the Wire Act's scope to sportsbooks.

Schwartz sees promising opportunities for iGaming expansion in 2025, beyond the current seven states where it's legal: Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island, and West Virginia. He notes that iGaming generates approximately three-quarters of gaming tax revenue in states with both sports betting and online casinos, making it an attractive option for states seeking new revenue streams.

While commercial operators may benefit from reduced regulatory oversight, tribal gaming could face challenges under Trump's administration. The appointment of former North Dakota Governor Doug Burgum as Interior Secretary raises concerns, given his previous reluctance to expand tribal gaming operations online despite the Indian Gaming Regulatory Act's potential applicability to internet casinos.

The tribal gaming sector argues that IGRA supports online operations when bets are processed and paid out from tribal lands, though this interpretation may face scrutiny under the new administration.

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