Multinational financial services corporation Morgan Stanley has downgraded its growth expectations for the online gaming market in the US.
In its latest report, Morgan Stanley estimates that revenue generated by regulated online gambling operations in the US will hit $2.7 billion (€2.5 billion) by the year 2020.
The amount is almost half the figure of $5.2 billion that the corporation forecast in an earlier report released in September of last year.
The latest figure is also a long way off the $8 billion predicted by the company prior to the release of the September 2014 report.
In addition to a drop in revenue expectations, Morgan Stanley has lowered its estimates for the number of states in the US that will have legalised some form of online gaming by 2020.
Morgan Stanley predicts that 15 states will legalise online gaming by 2020, down from its estimate of 20 states just six months ago.
So far, just three states in the US have legalised some form of online gaming, with Nevada, New Jersey and Delaware having launched internet gambling services in 2013.
California and Pennsylvania have recently introduced legislation in an effort to regulate such activities, but neither state has yet pushed ahead with plans for full legalisation.
source : www.igamingbusiness.com