Predictions: US Online Gambling Industry Worth $5.2 Billion By 2020
According to a report made by Thomas Allen of Morgan Stanley in New York, if the online gambling industry continues to grow and if at least 20 states choose to legalize some form of online gambling, the industry could generate as much as $5.2 billion a year by 2020.
At the moment, only three states have made some form of online gambling legal with Nevada legalizing online poker and New Jersey and Delaware legalizing online casinos as well. The industry, still considered to be a small one, generates around $10 million a month in revenues and has yet to reach the projected pre-legalization heights.
At the moment, only New Jersey, Nevada and Delaware have legalized online gambling with online poker being offered in Nevada as well as online casinos being allowed in New Jersey and Delaware. Presently, the US online gambling industry is worth about $10 million a month and is considered to be fairly small when compared to European markets. However, when more states legalize some form of online gambling, the higher the revenue stream will climb.
Despite the huge growth potential forecast, Morgan Stanley’s hypothesis is actually a downgrade from earlier, pre-legalization estimates. The group substantially lowered their earlier projected estimates following results that were a lot lower than expected in early legalization states.
There are many different states that have begun to consider, or at least explore, the possibility of legalizing some form of online gambling. But, many have placed their proverbial bets on California as the next state to legalize, but only for online poker.
Despite boasting the country’s largest population, the state only plans to legalize poker which is a market Morgan Stanley predicts will be worth $610 million by 2020. Many hope that California will pass the online poker bill in 2015 and go live in 2016, followed by Pennsylvania, Illinois and New York by 2018.
There are other states that have explored the possibility of legalizing online gambling and California is in no way guaranteed to be the next state to legalize. Colorado, Iowa, Massachusetts, Mississippi, West Virginia, Maryland, Hawaii and even Washington are thought to be possible contenders as they have researched and explored the possibility of legalizing online gambling, be it poker, online casinos or both.
Even though Morgan Stanley has devalued their estimates twice already, there are some that still believe them to be a little farfetched and bullish. Andrew Zarnett of Deutsche Bank, along with researchers from Eilers Research, believe that fewer than 8 states would have legalized online gambling by 2020 and that the market will only be worth $2 billion, less than half of Morgan Stanley’s estimates.
Get Your Best Bonus Here