Online Sports Betting Projected to Reach $8b by 2025 at NYC Sports Betting Investor Summit
Published November 22, 2019 by Lee R
Sports betting revenue online is a new stream of revenue that US states can harness, but can the market effectively absorb new entry?
With sports betting now a year old in the United States, the industry predictions began in full force by major financial leaders at NYC Sports Betting Investor Summit.
Morgan Stanley's Unanimous Prediction
Investment bank Morgan Stanley confirmed several expert prognostications that sports wagering in the United States is set to hit $8bn, as attendees shared their insights in New York.
Current Landscape
To date, 13 states have fully legalized sports betting, with New Hampshire, Washington, DC, and Montana expected to come in shortly.
New Stream Online
The $8 billion investment figure will be reached by 2025 as applicable only to online sports betting revenue, which is projected to be the main gaming industry driver for the next decade.
Other Experts Agree
Other experts weighing in on the subject include MGM Resorts International; Mohegan Sun and Hard Rock International, all whom have agreed with the forecasts to unanimously confirm accelerating growth of the industry.
Two Thirds Legalize by 2025
Morgan Stanley further estimates that up to 36 states will have sports betting in place by 2025, with spend per adult reaching $52 per year.
Increased Interest from Overseas
Legalised sports betting in the US is also expected to increase interest in American sports from Australia and the UK, a trend already initiated from ongoing efforts of the NBA, MLB, NHL and NFL to host more games overseas and increase viewership.
Current Totals
As of now, the US market is estimated to bring in $833 million in total revenues for this year 2019.
Growing Pains Ahead?
While appearing as astronomical growth on paper, the $8 billion figure by 2025 may not be such a substantial pie for competitors. PointsBet Chief Information Officer Seth Young described the coming market as an “all-out war,” in opining that the potential for success was “limited.”
New Brand Entry
With many brands rapidly competing to break into the online betting space, as many as a dozen or so new brands could be arriving to the market within a few years.
Outlook
While commercial casinos brought in $41.7 billion in the US in 2018, the added stream of online revenue represents the new market that many brands will be fighting to break into, and pose specific challenges in both ethical behavior and competitive balance that the newly regulated market will be left to resolve as they emerge.
