The U.S. government shutdown continues to set historical records, bringing widespread impact to the gaming industry. The federal closure has led to the disruption of agency operations, directly affecting tourism and air transport, and consequently impacting the gaming industry, which is primarily based on gambling. Regulatory uncertainty also creates development space for the prediction markets, but with potential risks.
Background and Historical Comparison of the Government Shutdown
The current U.S. government shutdown began on October 1 and has lasted for 35 days, becoming the 15th shutdown since 1980 and surpassing the record set between 2018 and 2019, making it the longest one to date. Legislators failed to reach a compromise on the funding bill, causing federal employees and services to stall. Historically, most shutdowns lasted only about a week, and the prolonged nature of this one has exacerbated uncertainties.
Direct Impact on the Gaming Industry
The prolonged shutdown has put pressure on the gaming industry, especially sectors reliant on tourism and aviation. Las Vegas, as a core gaming destination, has been significantly affected by disruptions in air travel. Shortages of personnel at the Federal Aviation Administration have led to flight delays and cancellations, with the Secretary of Transportation warning of potential widespread chaos. Additionally, international passenger traffic has declined due to trade policies, with a more than 13% year-over-year decrease in September at Harry Reid Airport, despite previous growth in gaming revenues. The U.S. Travel Association estimates a weekly loss of $1 billion for the tourism industry.
Regulatory Vacuum and the Rise of Prediction Markets
The shortage of federal funds has led to reduced operations at the Commodity Futures Trading Commission (CFTC), increasing regulatory uncertainty. Prediction market platforms like Kalshi and Polymarket have seized this opportunity to expand, reaching valuations of billions of dollars and becoming partners with sports leagues. The CFTC, with fewer than 700 full-time employees, is tasked with regulating a multi-trillion dollar market, and the shutdown could lead to layoffs. Meanwhile, prediction markets face legal challenges from various states but maintain the exclusivity of federal regulation, competing with traditional gambling companies.
Economic Impact and Industry Outlook
The longer the shutdown lasts, the harder it is to quantify its economic impact on the gaming industry, but pressures from tourism and regulation will persist. Industry lobbying groups such as the American Gaming Association and travel organizations are urging Congress to pass resolutions quickly to avoid damage during the peak seasons of Thanksgiving and Christmas. Prediction markets are growing in a weak regulatory environment, while traditional sports betting companies see their stock prices fall, indicating dynamic market changes. The future depends on the speed of the shutdown resolution and the recovery of federal agencies.
————
This article is from "PASA-Global iGaming Leader" gambling news channel:https://t.me/pasa_news
Original deep channel for gambling:https://t.me/gamblingdeep
Free data reports: @pasa_research
PASA Matrix: @pasa002_bot
PASA official website: https://www.pasa.news
