US iGaming To Be Worth $5.2bn Within Six Years

US iGaming To Be Worth $5.2bn Within Six YearsThe USA could see its iGaming market expand to be worth $5.2 billion by 2020, according to a report by Morgan Stanley, providing at least another 20 states join the three already offering regulated online gambling in the country. Needless to say, such a figure is substantially higher than the roughly $135 million in annual revenues currently generated by New Jersey ($120m), Nevada ($12m), and Delaware ($3m), but the estimate is still lower than one previously given by the financial company. Commenting on the latest forecast, a Morgan Stanley statement, said:
“We cut our US online gaming market forecast to $1.3B in 2017 (prior $3.5B) and $5B in 2020 (prior $8B). Growth has underwhelmed, creating a ripple effect on new mkts/end-user demand. We downgrade BYD to EW based on lower value from online and less confidence in other bull drivers.”
Of course a number of positive developments have to first take place before such a huge potential can be realized, such as a new piece of Federal legislation, or more realistically exponential growth in the industry through Interstate online poker compacts, poker networking and a multi-state system linking slot machines in different states.
Another major determinant affecting the size of a future US iGaming market would be which type of online gambling games the different states favour. California, for instance, has already indicated it intends to concentrate on offering just online poker which would subsequently limit its online revenues to around $610 million by 2020, according to Morgan Stanley, placing it in the same bracket as a future Illinois online casino games and poker market. Several other US states also seem intent on pursuing a similar line to California, including New York, Pennsylvania, Colorado, Iowa, and Maryland.
There are also a number of other hurdles which have the potential too scupper the USA’s online gambling revival altogether, too, including anti-online lobbying groups such as Sheldon Adelson’s Coalition to Stop Internet Gambling. If the Restoration of America’s Wire Act (RAWA) does eventually pass then Morgan Stanley’s predictions will be rendered moot and the lion’s share of online gambling revenues will continue to go into the pockets of unlicensed, offshore gaming operators.

Other news:   New York online poker bill introduced

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