The 2025 US elections have set the stage for significant developments in the gaming industry, particularly in influential states like New York, New Jersey, and Texas. As voters cast their ballots on Tuesday, the outcomes have introduced new dynamics and potential challenges for the gaming sector.
In New York, the mayoral race in New York City emerged as a focal point for the casino industry. With three downstate casino licenses up for grabs by the year’s end, the election of Zohran Mamdani as the new mayor is particularly notable. Mamdani, a 34-year-old democratic socialist, has become the youngest mayor in over a century and the first Muslim to hold the office in NYC. His proposed policies, which include higher taxes on wealthy individuals and businesses to fund his initiatives, have generated considerable discussion and concern among the city’s business and financial communities, including those in the gaming sector.
Bally’s Bronx, Resorts World NYC, and Metropolitan Park are the three contenders for the casino licenses, each proposing multibillion-dollar projects. Outgoing Mayor Eric Adams had previously backed Bally’s proposal, but his withdrawal from the race in September leaves the outcome more uncertain. The Metropolitan Park project, valued at $8 billion, is particularly significant as it is supported by Steve Cohen, a major Democratic donor. However, Cohen has stronger ties to Governor Kathy Hochul, who initially opposed Mamdani but eventually endorsed him.
Although Mamdani’s faith personally opposes gambling, he maintains a neutral stance on the downstate casino process, acknowledging the state’s ultimate authority in such decisions. “I’ve been open about my personal skepticism,” Mamdani shared with The New York Times in August, “yet I also know this is the law. The siting and the choices of which casinos will open, that pertains to the state.”
The gaming industry had its eye on Andrew Cuomo, former governor of New York, who was known for expanding the state’s gaming sector during his tenure. Cuomo played a key role in the 2013 passage of Proposal 1, which allowed for seven commercial casino licenses across the state, four of which were allocated upstate. His leadership also paved the way for the legalization of online sports betting in 2021, establishing New York as the largest market in the US by handle and tax revenue.
Meanwhile, in New Jersey, Democrat Mikie Sherrill emerged victorious in the gubernatorial race, defeating Republican Jack Ciattarelli. Sherrill’s leadership is likely to influence critical issues within the state, such as the debate over indoor smoking in casinos, casino expansion beyond Atlantic City, and potential adjustments to tax rates. Outgoing Governor Phil Murphy had increased sports betting and iGaming tax rates from 13% and 15% to 19.75% respectively, setting a precedent that Sherrill might be cautious to follow immediately.
Texas presented a different scenario, with the state still struggling with casino expansion challenges. Las Vegas Sands, eyeing Texas as a significant opportunity, was disappointed again as its supported candidate failed to secure a win in the state Senate race. Miriam Adelson, Sands’ controlling shareholder, has invested heavily in Texas politics, but the Sands-backed candidate John Huffman trailed in third place. As a result, the race heads to a runoff without him. Despite setbacks, the company remains determined, as Texas lawmakers will not reconvene until 2027, leaving time for future strategic planning.
In Pennsylvania, the Democratic majority in the state Supreme Court was preserved, which could have implications for the ongoing legal battle surrounding “skill games.” These unregulated, slot-like games have been a contentious issue for casinos, which argue they pose a competitive threat. The Supreme Court’s past rulings have favored skill game manufacturers, with the court asserting that businesses had legitimate reasons to believe their operations were lawful. “Given this landscape, it is reasonable for these individuals to believe that they are doing nothing wrong,” Justice Wecht noted, emphasizing the fairness of the court’s decision to uphold this interpretation.
While the 2025 US election results have introduced new leaders and maintained some existing political dynamics, their long-term impact on the gaming industry remains to be seen. The potential for regulatory changes, shifts in market strategies, and the evolving political landscape suggests that stakeholders in the gaming industry must remain vigilant and adaptable to navigate the challenges and opportunities that lie ahead.
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