Wall Street Firm Cuts Online Gambling Market Estimate By 30 PercentPrevious $5 Billion Estimate Lowered To $3.5 Billion By 2017 |
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Wall Street firm Morgan Stanley has lowered their expectations for the U.S. online gambling market from $5 billion to $3.5 billion by 2017 after seeing the initial results from regulated industries in Nevada, New Jersey and Delaware.
According to the research, the firm believes that technical problems such as geo-location errors have hurt initial growth.
“While we remain bullish on the online gaming opportunity in the U.S., we are lowering our estimates to better reflect the insights we have gained following the first few months of operations in New Jersey, Nevada and Delaware,” the company wrote.
The firm has estimated the market size to be somewhere in the neighborhood of $8 billion by 2020, down from an initial estimate of $9.3 billion.
Morgan Stanley sees possible licensing and regulation in states such as California and Illinois this year, which would help to boost the less than stellar numbers out of the gate.
Online poker has been running in Nevada for almost a full year. New Jersey and Delaware launched their products in late 2013.
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