U.S. Casinos Face Strain as Government Shutdown Passes 35 Days

The US federal government shutdown, now the longest in modern history, has moved beyond politics and into the gaming economy. With around 900,000 workers furloughed and two million working unpaid, the effects are showing up in travel, discretionary income, and even tribal funding.

Good to Know

• Shutdown passes 35 days, the longest in US history.
• AGA warns casinos and resorts of steep travel losses.
• Tribal casinos are using gaming income to cover frozen federal aid.

Travel Fallout Hits Gaming

The American Gaming Association and over 500 travel and hospitality groups, including MGM Resorts and Caesars, urged Congress to pass a clean funding bill. The letter warned that the shutdown could cost more than $1 billion weekly in travel spending.

As unpaid air traffic controllers and TSA agents face fatigue, delays threaten peak travel to Las Vegas and Atlantic City. Reduced flight capacity could cut into hotel occupancy, daily room rates, and casino win during the holiday season.

Las Vegas was already showing flat visitation and weak international arrivals. Any additional travel strain could push customers toward regional casinos, hurting Strip properties that rely on high-value events and conventions.

Tribal Casinos Under Pressure

For tribal governments, the shutdown is even more severe. Federal payments supporting health and education have stalled, forcing tribes to rely on casino revenue to sustain public programs.

Some nations can bridge the gap short term, but those dependent on federal transfers face furloughs, project delays, and budget cuts. If tourism and gaming activity fall further, these tribal enterprises may see both their funding sources dry up simultaneously.

Prediction Markets Grow as Oversight Thins

While the gaming sector faces turbulence, digital prediction platforms like Kalshi and Polymarket continue to expand. They trade event-based contracts under the Commodity Futures Trading Commission (CFTC), which remains understaffed due to the shutdown.

With limited regulatory oversight, these markets have become real-time indicators of political risk. Active traders are betting that the shutdown could extend deep into November, underscoring both investor anxiety and the lack of federal data releases.

What the Industry Is Watching

Executives in casino, sportsbook, and tribal operations are tracking three main signs:

1. Flight and hotel data in major gaming destinations.
2. Tribal spending shifts as casino funds replace frozen federal aid.
3. CFTC’s approach to prediction markets under limited capacity.

If Congress restores funding soon, the gaming industry may recover quickly. If not, late 2025 could mark a turning point in how both travel and regulation shape US gaming.

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