Donald Trump & Gambling: Where Does Trump Stand?

Love him or hate him, you wouldn’t bet against him. The Don is back for round two.

Will the sequel match the original? Are we in for the Empire Strikes Back or will he sink like the plastic shark in Jaws 2?

For one industry the return of Trump is good news. Operators of bricks-and-mortar casinos as well as the best online casinos, are bullish about gambling’s future.

In 2018, mid-way through Trump’s first presidency, the Supreme Court overturned the Professional and Amateur Sports Protection Act (PASPA).

The law made it illegal for states to ‘sponsor, operate, advertise, promote, license, or authorize’ sports betting.

The only states exempt from PASPA were Nevada, Delaware, Montana, and Oregon, where there were already forms of sports betting. The Supreme Court ruled the 1992 act unconstitutional and in violation of state rights.

The Trump Bump

Donald Trump’s free market approach to business, with fewer regulations and oversight, will almost certainly be hugely beneficial for the gambling business in the U.S.

In 2023, the US gambling industry, both online and offline, generated a record-breaking $66.5 billion, according to the American Gaming Association’s (AGA) Commercial Gaming Revenue Tracker, a ten per cent increase on 2022.

Of that total, more than $14 billion was taken in gaming taxes, contributing significantly to the coffers of state and local governments.

Sports betting boomed, with a handle of $119.8 billion. Online gambling exceeded $6 billion. The online gaming market continues to flourish, accounting for 25 per cent of total commercial gambling revenue.

Atlantic City Blues

Of course, Trump has a long relationship with the gambling business.

He owned several casinos in Atlantic City, from the 1980s through the early 2010s, including the Trump Plaza Hotel and Casino, Trump’s Castle, and the ‘eighth wonder of the world’: the Trump Taj Mahal.

In the end, all three casinos filed for bankruptcy. But by then, Trump had bailed out, with pockets full of money, deals cut and done, leaving a trail of debt, unpaid contractors, and chaos in his wake.

He said “People think I’m a gambler. I’ve never gambled in my life. A gambler is someone who plays slot machines. I prefer to own slot machines.”

Betting on Futures

Trump’s re-election will almost certainly have a positive effect on both online and traditional gaming operations.

One state worth watching under the pending Trump tenure is Texas. The state’s Republican party instructs lawmakers to oppose any gambling expansion.

Despite this, and sports betting remaining illegal in Texas, However, with neighboring states Louisiana and Arkansas already offering legalized sports betting, many Texans don’t have to travel far to gamble.

If Texas Governor Greg Abbott, who is strongly opposed to all forms of gambling, is given a place in the Trump cabinet, the door could be open for legalized gambling, as well as all the revenue and economic benefits it would generate.

Overall, though, it is unlikely Trump will directly influence gambling legislation.

He will almost definitely leave gambling regulation and laws at state level, opening the door for online betting platforms to lobby on a state-by-state basis.

Online Action

Legislators need only to look at the revenues generated by online gambling, in the handful of states where it is legal, to realize the opportunities.

Add to this the continued growth and expansion of mobile and interactive gambling, combined with the increasing use of cryptocurrencies, to disguise activity and location, and the argument for legal regulated gambling is hard to resist.

Prohibition has never worked. Bootleggers of the 1920s built speakeasies, now, players can bet with the best crypto casinos online easily.

The States of Betting

Thirty-nine states have legalized sports betting. Of the other 11, nine have either casinos or a state lottery. Only Utah and Hawaii remain completely gambling-free zones.

The latest state to allow retail betting is Missouri. It was Amendment 2 on the election voting form and passed by just 50.1%; a margin of less than 7,500 votes.

Revenues from betting will be taxed at 10 per cent and will be used to enhance educational programs.

The Trump Card

In 2015, Trump was quizzed about the legalization of sports betting in New Jersey by FOX Sports pundit Colin Cowherd.

Trump said: “”I’m OK with it because it’s happening anyway. Whether you have it or you don’t have it, you have it.”

Later that same year, Trump flip-flopped and sided with all the major professional sports leagues who opposed New Jersey’s sports betting offering. Of course, in 2018 PASPA was ruled unconstitutional and NJ embraced online sports betting (see above).

Trump is fundamentally a transactional operator. If there is a deal to be done that benefits him or his base, Trump will get behind it.

With freedom as his mantra, and good business as his bottom line, there’s no logical reason why Trump would push back against further expansion in the gambling sector.

Our prediction for the next four years: forget red, black, odd and even, just bet on orange.