Bad news for the nascent online gambling market in the United States. Morgan Stanley has effectively slashed its estimate for the Internet gambling market to $3.5 billion by 2017.
That’s down from a previous forecast of $5 billion, the AP reports.
The firm cited worse-than-expected technical issues but said it is optimistic about the new industry’s long-term prospects. It forecast an $8 billion market by 2020, versus its initial $9.3 billion estimate.
So what’s behind the reduction? Morgan Stanley pins the decision on a careful observation of the regulated domestic online gambling markets in recent months.
“While we remain bullish on the online gaming opportunity in the U.S., we are lowering our estimates to better reflect the insights we have gained following the first few months of operations in New Jersey, Nevada and Delaware,” the financial services giant announced.
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