Since 1 October, federal agencies, employees, and public services have been affected by the ongoing U.S. government shutdown. Lawmakers failed to reach an agreement on a funding bill by the deadline, and now, more than 35 days later, a solution remains out of sight.
This 2025 shutdown marks the 15th federal shutdown since 1980. Most past shutdowns lasted less than a week. However, as of Tuesday, the current shutdown has tied the record for the longest in U.S. history — previously set from 22 December 2018 to 22 January 2019 during President Donald Trump’s first term. With the Senate rejecting a stopgap funding bill for the 14th time, this shutdown is now officially the longest on record.
For the gaming industry, an extended shutdown increases pressure across both land-based and online sectors. Concerns over weakening tourism and disrupted air travel—particularly in Las Vegas—are growing. Additionally, uncertainty surrounding prediction markets and delays from federal financial regulators are adding to industry unease.
The American Gaming Association (AGA), the leading industry lobbying group, has not issued a direct comment on the shutdown. However, it referred iGB to a letter from the U.S. Travel Association, co-signed by the AGA. Other gaming industry signatories included Caesars Entertainment, MGM Resorts, and Delaware North.
“As a broad coalition of organisations and companies representing every sector of the U.S. travel industry, we urge Congress to immediately pass a clean continuing resolution to reopen the federal government,” the letter states. “With Thanksgiving—the busiest travel period of the year—approaching, the impact of a continued shutdown will be immediate, deeply felt by millions of American travellers, and economically harmful to communities in every state.”
Las Vegas most likely to feel air travel strain
For travelers and consumers, one of the most visible impacts of a government shutdown is disruption to air travel. Federal Aviation Administration (FAA) air traffic controllers have already missed one paycheck and are expected to miss another soon. This financial strain has contributed to staffing shortages, leading to flight delays at airports nationwide.
Transportation Secretary Sean Duffy warned during a Tuesday press conference that if the shutdown continues for another week, the country could face major travel disruptions.
“You will see mass flight delays,” he cautioned, according to Politico. “You will see mass cancellations. And you may see us close certain parts of the airspace because we just cannot manage it due to a lack of air traffic controllers.”
This is particularly troubling for Las Vegas, the nation’s leading gaming and tourism hub. The city has not recorded a meaningful year-over-year increase in visitors since September 2024. International travel—already weakened by President Donald Trump’s tariff and trade policies—has been hit especially hard. In September, international passenger traffic at Harry Reid International Airport fell by more than 13% year-over-year, with sharp declines from key markets such as Canada and Mexico.
While gaming revenue had been rising for three consecutive months, that growth stalled in September. Now, the pressure is mounting ahead of a critical fourth quarter, which will include major tourism drivers such as the Formula One Las Vegas Grand Prix in November, Thanksgiving, and the Christmas holiday season.
Although it is difficult to determine the precise economic effect of the shutdown on Las Vegas, the U.S. Travel Association estimated in September that the broader U.S. travel industry could lose $1 billion per week during a prolonged government shutdown.
Prediction markets abound during government shutdown
Digital gaming stakeholders are also feeling the impact of the federal shutdown, as reduced staffing and stalled regulatory operations take their toll. Prediction markets—whose popularity surged in late 2024 and early 2025—have become a significant area of interest for the gaming industry, partly due to evolving federal laws and regulations.
These platforms function like financial exchanges, allowing users to buy and sell contracts based on the outcomes of events in politics, economics, entertainment, and now sports. By entering the sports space, prediction markets have become direct competitors to state-regulated sportsbooks. They fall under the oversight of the Commodity Futures Trading Commission (CFTC), which is responsible for regulating them at the federal level. However, due to the shutdown and resulting funding shortfall, the CFTC has scaled back its operations.
Even before the shutdown, the CFTC was under significant strain. Acting Chairwoman Caroline Pham has been operating as the agency’s only commissioner following several departures. Normally, the commission consists of five members appointed by the president and confirmed by the Senate.
Pham has signaled that she plans to step down once a new chair is appointed. The first nominee from President Trump, Brian Quintenz, was withdrawn, and Michael Selig, the SEC’s crypto policy chief, is now the new nominee. If confirmed, Selig—or any successor—would still serve as the sole commissioner until additional nominations are approved, leaving the agency understaffed during a critical time.
Less regulation, more valuation
Prediction markets have faced a wave of legal challenges from multiple states in 2025. In their defense, these platforms continue to argue that only the Commodity Futures Trading Commission (CFTC) has authority over them—not state regulators. In turn, the broader gaming industry has questioned whether the CFTC is capable of acting as a nationwide regulator for gambling-related activity.
Currently, 48 out of 50 U.S. states have some form of legal gambling, each with its own regulatory agency. States with robust gaming industries—such as Nevada and New Jersey—invest heavily in oversight and enforcement. Even so, issues and controversies still arise despite well-established regulatory structures.
The CFTC, by comparison, employs fewer than 700 full-time staff and is responsible for overseeing a national market involving trillions of dollars in commodities, futures, and now prediction market contracts.
As the government shutdown drags on, uncertainty grows within the CFTC. Federal employees across multiple agencies face potential furloughs or layoffs, although legal disputes over workforce reductions are already in motion. Other financial regulators—such as the Federal Trade Commission, Consumer Financial Protection Bureau, and the Treasury Department—have also experienced staffing cuts this year.
Despite this unstable environment, prediction markets have continued to thrive. Platforms like Kalshi and Polymarket have reached multibillion-dollar valuations and even secured partnership deals with the National Hockey League. Meanwhile, traditional sports betting giants are struggling—shares of Flutter (parent company of FanDuel) and DraftKings have fallen nearly 30% and 40%, respectively, since September 1.
