- Key investors and sports betting companies met for a sports betting summit.
- Nearly all in attendance agreed that sports betting is a growing market in the US.
- Investors and companies predict that 36 states will legalize sports betting by 2025.
NEW YORK – At the NYC Sports Betting Investor Summit on November 4, it was predicted that sports betting will be a $7 billion industry in the next five years.
Exponential Growth In Five Years
The NYC Sports Betting Investor Summit hosted key investors and sports betting companies. The event was hosted by the investment firm, Morgan Stanley. In a panel, Morgan Stanley representatives said that legal sports betting is excepted to grow by eight fold by 2025. For reference, sports betting is currently worth $833 million right now as a whole.
Morgan Stanley is not the only company that came up with this result. Executives from Hard Rock, MGM Resorts, and Mohegan Sun all came with the same conclusion. Their predictions said that sports betting can be a $6 billion to $8 billion industry by 2025. Last year, investors said that sports betting would be a $5 billion industry by 2025. With how quickly sports betting is growing, they had to change their predictions.
The key to the growth of sports betting in the online market. Investors think that online and mobile sports betting will be the main revenue stream in the future. Without mobile and online, sports betting will not be able to grow as quickly.
That is not all. It also depends on how many states legalize sports betting. There are currently 13 states with legal sports betting that is currently operating. Four other states have legalized and are pending launch. Investors believe that by 2025, there will be 36 states with legal and active sports betting.
A Tough Industry To Break Into
With how quickly sports betting is growing, many new companies are looking to enter the market. But, veterans of the industry have a grim outlook for these potential companies.
“It is a growing market here in terms of revenue but it’s a very tough market. Everybody wants to be here. Ultimately, I think we’ll see some shaking out,” said Scott Butera, president of interactive gaming for MGM Resorts International.
New industries often create new companies. But, acquiring customers can be expensive. So can promoting a new business. The cost of doing both could end up sinking a lot of potential new companies. Those present for the panel said that only around 10 new operators will survive by the end of 2025.
All of the investors agree with one common notion, sports betting is a growing industry. As more states legalize sports betting, the market increases. More companies are likely to appear and help fuel the growth of sports betting in the United States.
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News tags: Hard Rock | MGM Resorts | Mohegan Sun | Morgan Stanley | New York | NYC Sports Betting Investor Summit | Scott Butera
Daniel is a writer that enjoys writing to inform readers. When Daniel was writing for The Borgen Project, he liked informing the world about victories in global poverty issues. Daniel is also an avid horse racing fan who has been going to the track with his father for over a decade betting the ponies. When he is not writing about sports betting or at the track, Daniel loves playing video games and watching sports in his spare time.