US to be a $9.3bn egaming market in 2020
Morgan Stanley also upgrades Boyd Gaming stock to 'overweight' and $12 a share
The US online gaming market will be worth US$9.3bn by 2020, more than the current combined land-based casino industry in Las Vegas and New Jersey, according to Morgan Stanley.
In an investor note, Morgan Stanley described its market estimates as “conservative”, with its valuation of online gaming in the US in 2014 set at approximately $670m.
With Las Vegas and Atlantic City posting approximately $6.2bn and $3bn respectively in gaming revenues for 2012, the analysts have argued the egaming market will match the current size of the market in the two major land-based gaming cities of the US by 2020.
As a result, Morgan Stanley also upgraded Boyd gaming’s stock to ‘overwieght’ and raised its price target to $12 a share. Boyd’s share price closed at $8.53 yesterday.
H2 Gambling Capital has estimated the US market will account for 30% of global GGR by 2017.