This week, the US gambling industry has welcomed several important financial variables, from the change of leadership at the Federal Reserve to the advancement of the encryption bill, and the controversy over the cap on gambling loss deductions. Multiple forces are quietly reshaping the industry's capital costs and compliance landscape from the dimensions of monetary policy, digital asset regulation, and tax fairness. The Senate officially confirmed Kevin Warsh as the new chairman of the Federal Reserve on Wednesday. This economic conservative, who served as a Fed governor during the Great Recession, will replace Jerome Powell, who has been at the helm for nine years. Warsh is known for his opposition to the Fed's long-term quantitative easing policy. He supported quantitative easing as a radical tool to address the crisis in 2006 but resigned in 2011 due to concerns about excessive spending. At that time, the Fed's balance sheet was less than 1 trillion US dollars, which has now swelled to over 6 trillion US dollars and is expected to reach a peak of 8.7 trillion US dollars in 2024. Chad Benon, chief analyst at Macquarie Gambling, previously pointed out that lower interest rates would drive valuation multiples to rebound, which is undoubtedly a potential positive for many gambling stocks far below their previous highs.
The Clear Act passes the Senate Banking Committee
The Senate Banking Committee passed the highly anticipated Clear Act on Thursday. This legislation, aimed at establishing a governance framework for cryptocurrencies and digital assets, has now moved to the full Senate for deliberation. The Republican Party hopes to complete the legislative process before the midterm elections in November. Although the bill does not directly involve gambling, its passage would grant the CFTC a significant increase in regulatory responsibilities—this agency, already heavily engaged in confrontations with the gambling industry, is facing a severe test of its regulatory capabilities with only one sitting commissioner, Chairman Michael Selig. On the other hand, the advancement of the Clear Act could open a compliance pathway for crypto assets to enter the regulated gambling sector. Nigel Eccles, co-founder of FanDuel, previously stated that the federal government has released a clear signal of embracing cryptocurrency technology, and operators' interest in crypto payments is equally clear, with state-level regulatory approval of crypto gambling payments being only a matter of time.
UFC chairman urges the repeal of the gambling loss deduction cap
UFC President Dana White wrote to President Trump on May 11, urging the repeal of the provision in last July's comprehensive bill that reduced the gambling loss deduction cap from 100% to 90%. White stated in the letter that the new rule makes betting within the US irrational—even if players are at a loss for the entire year, they may still incur tax liabilities due to the deduction gap. He also warned that this policy might incentivize players to move towards unregulated offshore platforms. Nevada Representative Dina Titus is one of the most vehement opponents of this adjustment. She immediately submitted a related amendment proposal after the bill passed last year, although it has not yet made substantial progress. Titus previously stated that this adjustment by the Senate would only encourage people to stop declaring gambling earnings and instead embrace unlicensed platforms.
PASA official website continues to track the latest developments in global gambling financial policies and industry capital dynamics, noting this week's triple overlap of the Federal Reserve leadership change, crypto legislation advancement, and gambling tax policy controversy, which is building new external constraints for the US gambling industry from the dimensions of monetary policy, digital asset compliance, and tax fairness.
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This article is from "PASA-Global iGaming Leaders," a gambling industry news channel: https://t.me/pasa_news
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