According to Morgan Stanley, which sponsored the Summit organized by Clarion Gaming, the US market will generate nearly US$7 billion in revenue by 2025, up significantly from US$833 million in 2019. Previous estimates by the bank suggested that US sports betting could become a US$5 billion industry within the next five years.
At the event, executives from some of the major players in the US gambling field, including MGM Resorts International, Hard Rock International, and Mohegan Sun, made similar predictions, saying that sports betting could generate between US$6 billion to US$8 billion in revenue by 2025.
Panelists warned that despite the more than promising predictions, not everyone who has ventured or is about to venture into US sports betting would claim a nice share of the market. Many would fail, investors and executives said, squashed by the high costs of promoting a successful sports betting business and acquiring customers in a highly competitive field.
PointsBet Chief Information Officer Seth Young said that “it’s war out there” and that “at the end of the day there’s going to be a lot of carcasses out there on the road.”
Scott Butera, President of Interactive Gaming at MGM, added that the market is growing rapidly in terms of revenue, “but it’s a very tough market” and that while everybody wants a piece of the US sports betting pie, “we’ll see some shaking out.”
Panelists said that at least 10 new sports betting operators could join the field in the coming years.
Summit participants pointed to one major hurdle that is hampering the even quicker growth of US sports betting. Many customers find it difficult to deposit funds in their accounts as many major credit card issuers refuse to process gambling transactions.
Commenting on that issue, Kresimir Spajic, SVP and MD Online Gaming and Sports Betting at Hard Rock, noted that in Europe around 80% of all sports betting transactions are financed via credit cards, compared to about 30% in the US.
Source: Casino News Daily
