ATLANTIC CITY, NJ – The many different types of gambling are quickly merging with one another and with the media – and Wall Street is taking note.
Casino gambling, internet gambling, sports betting, and daily fantasy sports are no longer separate silos with unique audiences. Gambling companies are increasingly combining them and working with media companies to expand the reach of gambling.
This expansion prompts Wall Street analysts to predict rapidly growing US sales for the next five to ten years. Morgan Stanley sees a sports betting and internet gambling market worth $ 15 billion by 2025, and Macquarie Research says that market could be worth $ 30 billion by 2030.
“The once disparate categories of online gaming, media, and sports are joining teams to create powerful partnerships that we believe will increase viewership, increase overall fan engagement, and deliver significantly higher market values for all connected individuals “wrote Macquarie in a report published last week.
Numerous examples of sports betting and media company deals were given over the past year, including Bally’s and Sinclair Broadcasting; Flutter Entertainment and FOX; PointsBet and NBC; William Hill and CBS; DraftKings and Caesars Entertainment partner with ESPN; Penn National and Barstool Sports; BetMGM and Yahoo; and Turner Sports’ deals with FanDuel and DraftKings.
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David Schwartz, a gambling historian at the University of Nevada-Las Vegas, said combinations like these “appear to be the wave of the future.”
“As geographic expansion in the US is nearing completion – Texas is the largest underserved market – casino companies are looking to increase revenue by expanding into new forms of gambling. [and] Online and sports betting are the most popular, “he said.” Even daily fantasy sports are seen as a viable route, as the recent moves by Bally’s and Caesars show. The media partners get more content and more eyes for their product. “
Bill Miller, president of the American Gaming Association, the national trade association for the gaming industry, said such deals were “a natural extension” of the industry’s desire to keep pace with customer expectations.
“The responsible growth of these industries will be critical to the continued success of the industry,” he said.
In a report earlier this month, Morgan Stanley forecast a sports betting and internet gambling market of $ 15 billion by 2025, up 27% from current levels. Of this, 10 billion US dollars should come from sports betting, the company said.
Most analysts predict that at least half of the country will have legal sports betting by the end of 2021, after which the expansion will continue.
Morgan Stanley said US sports betting and internet gambling revenues reached $ 3.1 billion last year, well above the forecast of $ 2 billion. While some of the growth in online betting has undoubtedly been aided by month-long casino closings during the coronavirus pandemic, Morgan Stanley states that an enduring market is taking shape in these industries.
“We see legalized US sports betting and iGaming as a one-time change for a mature gaming industry,” wrote Morgan Stanley. “We understand that Americans’ interest in sports and gambling should lead to higher revenues [per] Adult than we expected before. “
In this photo taken July 2, 2020, a woman plays a slot machine at the Golden Nugget Casino in Atlantic City, New Jersey. US gambling companies are increasingly bringing together different forms of gambling, including sports betting, casino gambling, internet gambling and daily fantasy sports, and partnering with media companies to drive sales. (AP Photo / Wayne Parry)
In this October 25, 2018 photo dated October 25, 2018, sports betting employees at the Tropicana Casino in Atlantic City, New Jersey are counting money just before it opens. US gambling companies are increasingly bringing together different forms of gambling, including sports betting, casino gambling, internet gambling, and daily fantasy sports, as well as partnering with media companies to drive revenue. (AP Photo / Wayne Parry)