During fervent campaigning that led up to the recent American elections, neither candidate had much to say about online gambling. This is not too surprising, given a pandemic, heated debates about the validity of mail-in voting, and a slew of other issues too numerous to mention.
Few voters would have based their pick on a single issue like online gambling. But as the dust begins to settle, let us look at the industry’s future under each candidate to see which is more favorable.
Donald Trump
Despite being a self-proclaimed Atlantic City’s casino magnate, a Donald Trump presidency would not spell a positive future for online casinos. To this description of America’s current President, one would have to add the word ‘former’. He no longer owns or operates any casinos in Atlantic City. The last one, Trump Plaza Casino, is scheduled for implosion within days of the Presidential Inauguration in January 2021. Notorious for his family business-driven motivation, it is unlikely Trump would help the online casino industry without a stake in it.
Trump went as far as inhibiting online gambling during his first term of office, during which the Department of Justice issued new guidelines on the implementation of the Wire Act. Previous guidelines spoke about prohibiting interstate sports betting, but the DOJ wants it extended to all forms of online gambling. This has online casinos worrying about managing business risk in a climate that could become increasingly hostile.
While there is no substantive proof of direct meddling in the Wire Act issue from Trump, changed guidelines were issued during his term of office. Some speculate that his close friendship with Republican donor and Las Vegas Sands chairman Sheldon Adelson might have been a factor, as Adelson is fiercely opposed to online gambling.
Joe Biden
Undoubtedly, online casinos and their operators are relieved that Biden has been declared President-Elect because his views and policy plans are more disposed toward growing the industry. At worst, he will not do any harm. At best, he will enable it to flourish further. He has indicated that he intends to reverse the Wire Act guidelines, and online casino service providers are heaving a sigh of relief at that prospect.
On the negative side, Joe Biden’s tax plan for businesses would see increased taxation for large corporates to offer tax relief to individuals. However, provided their companies can establish new markets, online gambling operators will not mind paying additional tax as a quid pro quo.
Biden is an opponent of federal meddling in state affairs. Legalizing online gambling is done at the state level. His policy of stepping back will make it easier for more states to enact laws allowing online casinos.
