2025 Elections Reshape U.S. Gaming Landscape

The 2025 U.S. elections, the first since Donald Trump’s return to the presidency, delivered consequential results for the gaming industry across several key states. From New York’s downstate casino race to Pennsylvania’s ongoing battle over skill games, the political outcomes are set to influence regulatory and investment decisions for years to come.

New York

In one of the most closely watched races for the gaming sector, Democratic Socialist Zohran Mamdani was elected New York City mayor, defeating former governor Andrew Cuomo and activist Curtis Sliwa. Mamdani, 34, is the youngest mayor in a century and the city’s first Muslim leader. His victory introduces uncertainty into the state’s downstate casino process, where three licences are expected to be awarded by year’s end.

The finalists — Bally’s Bronx, Resorts World NYC, and Metropolitan Park — have all proposed multibillion-dollar developments. Each project’s prospects could be shaped by Mamdani’s progressive platform, which calls for higher taxes on the wealthy and large corporations. While Mamdani has expressed personal opposition to gambling on religious grounds, he has also said that casino siting is a state-level decision. “The siting and the choices of which casinos will open, that pertains to the state,” he told The New York Times in August.

Outgoing mayor Eric Adams had publicly supported Bally’s Bronx bid, while Metropolitan Park’s backer, hedge fund billionaire Steve Cohen, is a major Democratic donor with close ties to Governor Kathy Hochul. Resorts World, meanwhile, is offering the highest proposed licensing fee ($600 million) and tax rates (56% on slots, 30% on table games) to secure approval. A Cuomo victory might have reassured industry leaders. As governor, Cuomo oversaw New York’s 2013 casino expansion amendment and the 2021 legalization of online sports betting, which helped make New York the largest sports betting market in the country.

New Jersey

Across the Hudson, New Jersey voters elected Democrat Mikie Sherrill as governor, succeeding Phil Murphy. Her administration will inherit several contentious gaming issues. Chief among them is the push to ban indoor smoking in Atlantic City casinos. Advocacy groups have intensified their efforts, but the powerful casino lobby has so far blocked legislation. Sherrill has previously called casino smoking a “weird fight to have,” but avoided taking a firm stance during her campaign.

Other key topics include casino expansion beyond Atlantic City and the potential for further tax increases. Murphy raised iGaming and sports betting taxes this year to 19.75% from 13% and 15%, respectively. Analysts say additional hikes under Sherrill are unlikely in the short term, though neighboring states’ tax structures could reignite the debate. New Jersey’s decisions may also be influenced by New York’s downstate casino expansion, which could siphon revenue from Atlantic City.

Texas

In Texas, Las Vegas Sands’ long-running efforts to open a casino resort hit another political roadblock. Despite heavy spending in the state Senate District 9 race, Sands-backed candidate John Huffman failed to reach the runoff. The company’s controlling shareholder, Miriam Adelson, invested $1.2 million directly in Huffman’s campaign, supplemented by $2 million from a pro-gaming group. Huffman finished a distant third, with Democrat Taylor Rehmet (48%) and conservative Leigh Wambsganss (36%) advancing to a runoff.

The defeat underscores the continued strength of anti-gaming forces led by Lieutenant Governor Dan Patrick, who has repeatedly blocked gambling legislation. The Texas Legislature will not reconvene until 2027, meaning Sands’ casino ambitions are on hold once again. Earlier this year, Sands had withdrawn plans for a Dallas-area casino following community resistance and pressure from tribal operators in neighboring states.

Pennsylvania

In Pennsylvania, gaming operators closely watched the state Supreme Court elections, where all three Democratic incumbents — Justices Christine Donohue, Kevin Dougherty, and David Wecht — retained their seats.

The court’s existing 5-2 Democratic majority has issued rulings favorable to “skill games,” unregulated machines resembling slots that are popular in bars and convenience stores. In March, the justices ruled against gaming regulators who had denied licenses to businesses operating skill games, calling the denials “excessive and unfair.” The decision maintained the industry’s ambiguous legal status while reinforcing that regulators cannot penalize operators who reasonably believed their machines were lawful. For Pennsylvania’s casino industry, the ruling and the court’s continuity signal further challenges in curbing competition from skill games, which they argue drain revenue from regulated venues.

The 2025 elections underscored how deeply state politics shape the future of U.S. gaming — from expansion in New York to stalemates in Texas.

Outlook

The 2025 elections reinforced the regional complexity of U.S. gaming politics. Progressive leadership in New York and New Jersey could bring regulatory tightening, while conservative resistance in Texas continues to stall expansion. Pennsylvania’s courts, meanwhile, have solidified the position of unregulated gaming operators.

For investors and operators, the next year will hinge on how state governments translate these political outcomes into policy — and whether the industry can adapt to a fragmented regulatory map that shows no sign of convergence. Would you like me to add estimated economic impacts or analyst reactions from the gaming sector (e.g., from investment firms or regulatory analysts)? That could deepen the analysis while keeping the journalistic tone.