Is the Gaming Industry a Hot Gamble?

Gaming Industry Heating Up

It’s always a concern when you leave Houston and land somewhere HOTTER. In my case, the temperature in Southwestern Florida was 10 degrees Fahrenheit warmer than the Lone Star State. You’ll have to forgive my shock. The last time I was in Houston, I nearly exploded just stepping out into that Texas sun. It appears that changing weather patterns are in full effect. Or maybe it’s just hotter here because of a major story developing in the for the state within the gaming industry.

If you haven’t already heard, I’m very bullish in the casino industry. With more Americans able to get out to physical locations, gaming numbers have bounced back quickly.

Florida is on the verge of a massive deal that would give the Seminole Tribe control of several sportsbooks across the state. Yep, sports gambling is coming to the sunshine state. And once this bill passes through the state, it can provide a significant boom for tax revenue, tourism, and much more.

The pact between Florida and the Seminole Tribe would run for 30 years. It would likely bring in $6 billion in revenue to the state over those three decades. The first five years will likely offer about $2.5 billion to the state.

This is the latest in a string of massive moves by states to legalize this so-called “vice” as a means of boosting tax revenue and deterring black markets. In 2018, the Supreme Court struck down a law that allowed the government to regulate states’ sports gambling laws. Before that law, only Nevada had a robust sports gaming market.

Now, 22 states have passed laws to permit gaming in some fashion. Florida is on the verge of Lucky No. 23. Maybe I’ll play that number in Roulette.

The Other Impact of This Gaming Industry Deal

There’s another important component to this deal. Florida Gov. Rick DeSantis (R-Florida) has been the center of national controversy or national praise, depending on one’s politics. DeSantis reopened the state faster than any other governor in the nation in the wake of COVID. He has been the subject of questionable journalism by 60 Minutes and the talk of being a frontrunner for the 2024 GOP Nomination.

He still must get through the Florida 2022 Gubernatorial election against a difficult field of Democrats. But this deal, which has bipartisan support, might push him over the line there.

And it could very well cement him as a leading candidate or vice-presidential candidate in a very critical swing state. I know it’s early to start thinking about ANOTHER U.S. election. Still, this development can quickly garner support for DeSantis in the gaming industry, which has quickly increased its lobbying presence and donation dollars in critical swing states like Nevada, Pennsylvania, Colorado, Michigan, and Arizona.

Garrett Baldwin
Garrett Baldwin
Garrett Baldwin joined Godesburg Financial Publishing as Chief U.S. Markets Analyst in early 2021. A Johns Hopkins-trained Economist, he’s worked with hedge funds, venture capital firms, angel investors, and economic advisors to the U.S. government. Baldwin specializes in market anomalies and alternative investments. He’s written extensively on momentum, value, insider buying, and other unique strategies that provide investors that elusive edge.
Garrett Baldwin
Garrett Baldwin
Garrett Baldwin joined Godesburg Financial Publishing as Chief U.S. Markets Analyst in early 2021. A Johns Hopkins-trained Economist, he’s worked with hedge funds, venture capital firms, angel investors, and economic advisors to the U.S. government. Baldwin specializes in market anomalies and alternative investments. He’s written extensively on momentum, value, insider buying, and other unique strategies that provide investors that elusive edge.

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