Morgan Stanley has increased the estimate for sports betting in the US and said that the industry will be worth $7 billion by 2025.
US.- Sports betting is currently one of the biggest verticals in the gambling industry in the world. While its domination is still nowhere close to casinos’, sports betting is set to experience significant growth in the next few years.
Morgan Stanley has changed its estimate for how much the industry will be worth in 2025, AP reported. 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).
The NYC Sports Betting Investor Summit took place on Monday and several investors and sports betting companies were part of it. Besides Morgan Stanley, other operators have predicted similar finances, ranging between US$6 billion and US$8 million.
Scott Butera, president of interacting gaming for MGM Resorts International, said: “It is a growing market here in terms of revenue but it’s a very tough market. Everybody wants to be here Ultimately I think we’ll see some shaking out.”
Worst and best-case scenario
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.