Morgan Stanley recently did some research in regards to the online gambling industry in America. The results of that research were amazing, as it revealed that the industry could hit around $5.2 billion by 2020. However, in order for that to happen, at least 20 states would have to make online gambling legal by 2020.
As of now there are only three states that have made the activity legal. Those states include Delaware, New Jersey and Nevada. Statistics show that New Jersey brings in more than $10 million per month, while Nevada brings in around a million per month, and Delaware brings in around $240,000 per month.
As of right now America’s online gambling industry is not that big. In other words, it’s a very small market with plenty of room and time to grow, thus being one of the reasons why it could become a multi-billion dollar industry in the next few years.
As more states start to legalize online gambling, the more revenue each state should bring in. However, this will only likely be true if each state has deals to combine player pools. When there is a lot of liquidity, then the industry can thrive, and this is why poker is a popular revenue source in the online gambling industry.
Business Insider wrote that the hypothesis by Morgan Stanley is actually a downgrade from estimates that were given in the past, and that’s despite the potential for huge growth. Morgan Stanley actually lowered their estimates after results to-date were lower than expected in the early adopter states.
Also, when it comes to the state that is most likely going to make online poker legal is California, and it could happen in 2015. An expert in gaming law said that the odds of this happening are very good, so online gambling fans may be in for a treat sometime in 2015.
It is worth pointing out that even though it is only September, the chances of a bill legalizing online gambling, in any of the states interested in doing so, has almost no chance at passing because no discussions about it have been taking place, at least not as of recently.
Another interesting thing to point out is that Morgan Stanley’s chart shows that California’s online gambling market will only represent a very small chunk of America’s overall online gaming market size in 2020. California and Illinois will be about the same size.
California may have the largest population in America, but as of now it seems that the state is only interested in making online poker legal, and nothing else. That means California residents will only be able to play online poker, and not other games for money, such as slots, Blackjack, Roulette and so forth. As for Illinois, there is a good chance the state will legalize numerous of games that its residents can play for real money.
Even though California will likely have a very small market of America’s overall online gambling market, it is still expected to be $610 million by 2020.
As previously mentioned, there are only three states that have legalized online gambling, but there are more states that are considering legalizing it. Some of those states include Massachusetts, Colorado, Mississippi and Iowa to name a few. There are around 10 states in total that are considering making online gambling legal. Even though it appears no bill will pass between now and the end of 2014, a few bills could pass sometime in 2015.
Just as California is considering making only online poker legal, other states considering passing bills to make online gambling legal will approach it differently.
Also, you may recall that a few years ago there were a few international online gambling companies that had operations in America, but have ceased operations due to it being illegal. It remains unclear if some of those companies will be allowed to operate in states that make online gambling legal. As of now, it looks like casinos that operate in states where it is legal, will be responsible for online gaming websites, but things can rapidly change in the future, and as more states legalize Internet gambling. For now, residents in each state have to wait and see what happens in regards to online gambling.