Morgan Stanley Projects Online Casino Profits in United States

Investment banks are always best placed to provide accurate financial projections. The world famous bank Morgan Stanley believes that there will be a huge growth in online casinos throughout the United States. They believe that revenue from online gambling in the U.S. will reach $5.5 billion by 2020. These figures are based on the fact that around 15 to 20 states would legalize online gambling by then.

Distant Future –

For now, those figures are a world away. Only three states in the U.S. have legal allowances for online gambling. Those states are Nevada, Delaware and New Jersey. The most recent to legalize was NJ, with betting sites based in the state not doing as well as analysts projected.

If seventeen new states were added to online gambling in the United States, and they made as much money as those three states currently do, the figures would NOT reach $5 billion. There would have to be a lot of progress and growth for Morgan Stanley’s projections to reach reality.

4000% Growth Projected –

Over the past year, the state of New Jersey has made $120 million from online gambling. Nevada made around $15 million at the same time, while Delaware only generated $5 million. That makes $135 million. If seventeen new states were added and they made the same amount, on average, the figure would barely reach $1 billion, let alone $5 billion.

However, Morgan Stanley believes that mass legalization will bring more profits for existing states. It will allow betting sites to operate in more than one state, increasing the likelihood of inter-state jackpots, poker games, and more.

Importance of Mass Poker Communities –

In the present climate, players from New Jersey, Nevada and Delaware can play online poker against each other. However, those are three far away states with little in common. In order for inter-state poker to reach its full potential, neighboring states must be able to access each other’s databases. For example, if players in New Jersey, New York, Massachusetts, Maine and Connecticut could play against each other, online casino sites would see enormous increases in revenue.

Not only would inter-state games lead to more business, but they would also attract high end players. Elite poker players in the United States prefer land based games. Millions are spent at high end poker tournaments every year. That is money online sites could make, if they were allowed to operate in a country-wide manner.

False Hope –

There is a chance that Morgan Stanley’s vision of the gambling future will never come to pass. Certain lobbyists in the United States want a total ban on online gambling. There is no indication of whether they will succeed or not.

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October 12, 2014 by : posted in Uncategorized No Comments

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