When Joe Biden took office as America’s 46th President signaled an exciting prospect for the gambling industry. Whereas investors had believed that former President Donald Trump would be better for the sector as a casino owner himself, his subsequent actions proved this not to be the case. He allowed for a broad Department of Justice interpretation of the Wire Act, which hampered any expansion of online casinos and gambling operations.
Biden has expressed disagreement with the DOJ’s interpretation of the Wire Act, making him a more industry-friendly President than his predecessor. Online gambling sites are looking forward to reaping the benefits of the President’s determination to stimulate America’s economy after a challenging year dominated by COVID-19 and a contentious election.
As a Democrat, Biden has a reasonably decentralized approach to federal government principles, preferring to allow states to enact laws through their legislatures. This will facilitate states that have legalized online gambling to make decisions regarding online casino and sports betting operations’ expansion.
Many people have been working from home during the pandemic. They are the lucky ones as millions of others have lost their jobs. Joe Biden has close ties to unions and is more interested in the plight of individuals than corporations. His administration is actively seeking ways to keep gaming workers employed, get many rehired after furlough, and ensure that their employment remains secure.
His first few weeks in office have seen Biden moving swiftly to reverse what his administration perceives as several ill-informed policies brought into being during Trump’s presidency. Among them is the Wire Act interpretation, which industry insiders said was due to Trump currying favor with recently deceased Las Vegas Sands owner, Sheldon Adelson.
What it means for casino stocks
Online gambling stocks saw a surge on Inauguration Day as investors confidence rose. The uncertain time between the election and inauguration had seen some prevarication amid concern that there would not be a peaceful transition. Upon Biden’s inauguration, it became apparent that any controversy was largely over, leaving investors confident that Biden’s administration would start pushing its policies through.
Additionally, states that have already legalized online gambling, such as Indiana, are a breeding ground for active competition. New York state is bringing online sports betting legislation into effect. Maryland, South Dakota, and Louisiana residents voted to legalize sports betting in some form during the November elections.