Next US iGaming State Not Expected Until 2016
December 26, 2014 12:44 pmThree US states launched online gambling sites back in 2013, and at the beginning of 2014 a Morgan Stanley report optimistically predicted a further 20 states would embrace regulated online gambling by 2020. However, momentum has slowed since then, and Morgan Stanley is currently predicting just California will adopt legislation in 2015, with an actual site launch not expected until 2016. .
That means there is likely to be at least a three-year gap between Nevada, Delaware, and New Jersey becoming the country’s first online gambling states, and a fourth state being tempted to throw in its lot. Hardly a glowing endorsement on the attractiveness of online gambling to potential investors. Furthermore, the online gambling industry will have to go some if it is to live up to Morgan Stanley’s prediction of seven regulated states by 2017, which includes the addition of Illinois, New York, and Pennsylvania. As the report states:
“We forecast a market size of $1.3 billion in 2017 with seven states live and $5.2 billion in 2020 with 20 states live.”
When Morgan Stanley made its forecast, however, the financial services business was anticipating the imminent entry of PokerStars into the New Jersey market, which could have in turn spurred other US states into action. That was more than six months ago, and in the meantime such a deal has moved no closer to becoming a reality as the issue has become bogged down in politics as New Jersey Governor Chris Christie seeks to shield his 2016 Presidential elections from such a potentially divisive topic as online gambling.
Needless to say, even more distant a prospect is the possibility of all 50 US states approving online gambling anytime soon, a move Morgan Stanley claims would create an US iGaming market worth more than $10.7 billion.