Brokerage TD Ameritrade interested in sports betting
TD Ameritrade is reportedly interested in new ways to create revenue and the sports betting business might be one.
US.- Brokerage firm TD Ameritrade might land in the sports betting business as it is looking for new ways to make up for lost revenue. As first reported by Business Insider, the firm is in the early stages of exploring the sports betting field.
Vijay Sankaran, the chief information officer of TD Ameritrade, told Business Insider that the firm is conducting focus groups to test interest in sports betting among its customers. While there are no specific products involved yet, the focus groups were very engaged, according to Sankaran. He said that the results show that sports betting may be a space where they can be involved.
Last month, TD Ameritrade eliminated trading fees, which made the company lose revenues. Sports betting could be a good way in which the company can make up for that lost revenue.
“We’re in the early stages of exploring this space, and although we won’t comment on any specifics, we are always evaluating potentially innovative products and services that may attract new customers,” TD’s Sankaran told Forbes.
Sports betting will be worth US$7 billion in 2025
Morgan Stanley has changed its estimate for how much the industry will be worth in 2025. The investment firm believes that the US sports betting market will generate around US$7 billion in revenue by 2025. This estimation is higher than the US$5 billion that Morgan Stanley had predicted in 2018.
The US$7 billion figure would be less than 20% of what commercial casinos generated in the US in 2018 (US$41.7 billions). Besides Morgan Stanley, other operators have predicted similar finances, ranging between US$6 billion and US$8 million.
Morgan Stanley said that if every state in the US legalises sports betting by 2025, the industry could generate US$15 billion. If only 22 states, which is less than 50%, have legalised sports betting by 2025, the figure decreases to US$2.5 billion.
