US financial services firm Morgan Stanley has filed a report claiming that online gambling could be worth more than $5 billion in less than six years time.
The prediction comes as online gambling nears its first anniversary in New Jersey and Delaware and predicts the number based on a small number of states coming onboard to the idea of regulated online gambling.
If all 50 states were to legalize online gambling the market could theoretically top $10.7 billion, but that is unlikely given the fact that not every state has active gambling currently taking place.
The study makes assumptions that the first states to legalize online gambling will take four years to reach market maturity and their long run rate of return is 25%. Morgan Stanley also projects most online betting operators to not break even until their second year.
Even with the seemingly high numbers, the online betting study is a downgrade from earlier projections, but the company was quick to point out that they remain optimistic regarding the future of online gambling in the United States.