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With Georgia Handing Democrats Control Of Senate, Tighter Gun Control May Be In The Cards

With Georgia Handing Democrats Control Of Senate, Tighter Gun Control May Be In The Cards

Democratic victories in the Senate runoffs in Georgia could have a massive impact on the gun industry.

Rev. Raphael Warnock, a Democrat, was projected by news organizations to have defeated the Republican incumbent Sen. Kelly Loeffler, and while the tight race between Democrat Jon Ossoff and Sen. David Perdue has yet to be called, Ossoff is expected to win and he declared victory Wednesday morning.

A double Democratic victory would give them a 50-50 split in the Senate, with Democratic Vice President-elect Kamala Harris serving as the tie-breaking vote. If Senate Democrats can maintain unity, that means they finally have a real chance of advancing gun control legislation that could disrupt sales for gunmakers like Smith & Wesson and Sturm, Ruger RGR +12.1%.

“If Democrats control the Senate, there is no roadblock for the gun control plans that Sen. Chuck Schumer and President-elect Joe Biden have in mind,” said Mark Oliva, public affairs director for the National Shootings Sports Foundation.

For the first time in 10 years the Democrats would control the Senate and Congress and the White House, opening up opportunities for gun control legislation that wouldn’t stand a chance with a Republican majority.

In the short term, it could accelerate sales for guns and ammunition, which have already soared to record levels. Federal background checks for gun purchases surged 40% in 2020, compared to the year before, for the record annual tally of 39.7 million, according to the Federal Bureau of Investigation. Background checks are not the same as gun sales, but FBI background checks serve as the closest nationwide proxy.

In the longer term, Democratic control could potentially cause significant trouble for the gun industry. Gun manufacturers are particularly concerned about Biden’s proposal to repeal the Protection of Lawful Commerce in Arms Act, which protects the gun industry from wrongful death lawsuits.

Biden also wants to ban the manufacture of assault rifles, which the industry prefers to call modern sporting rifles, for civilian customers. His plan includes a long list of gun control measures, including expanding background checks, implementing more restrictive gun control on assault rifles and high-capacity magazines, and requiring background checks for unregistered ghost guns.

The specter of Democratic gun control was driving up gun sales for months before the election, as Americans stockpiled in anticipation of the possibility of a Democratic president.

“Modern sporting rifles and high-capacity magazine pistols will likely be the strongest selling categories of firearms in the near term, given that proposed legislation by the Biden administration seeks to target these particular categories,” said Rommel Dionisio, a gun industry analyst for Aegis Capital.

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