Gambling businesses have been partnering up with media groups to keep up with customer demand. Analysts expect the market to reach $15 billion by 2025.
$30 Billion by 2030?
As more and more gambling businesses partner up with media groups, Wall Street analysts said they expect the US gambling and betting industry to grow quickly over the next five to ten years. Breaking the walls between casino gambling, iGaming, sports betting, and daily fantasy sports, gambling companies have expanded their reach via media partnerships and combined offerings.
According to Morgan Stanley, 2025 will see a fast-growing $15 billion online gambling and sports betting market, while Macquarie Research even speculates the market could reach $30 billion by 2030. In a report published Tuesday, Macquarie said that “the once disparate categories of online gaming, media, and sports are joining teams to create powerful partnerships that we believe will grow viewership, increase overall fan engagement, and drive significantly higher market values for all those connected”.
Keeping Up with Growing Demand
Last year saw a number of casino operators sign partnership deals with big media groups, including, but not limited to, Flutter Entertainment and FOX, PointsBet and NBC, DraftKings and Caesars Entertainment partnering with ESPN, Penn National and Barstool Sports, or BetMGM and Yahoo.
“With geographic expansion nearly complete in the US […] casino companies are looking to grow their revenues by expanding into new forms of gambling, [and] online and sports betting are the most prominent. Even daily fantasy sports is seen as a viable route, as seen by recent moves by Bally’s and Caesars. The media partners get more content and more eyes on their product.”David Schwartz, gambling historian at University of Nevada Las Vegas
AGA President Bill Miller said that “responsibly growing these verticals will be essential to the industry’s continued success,” especially if it wants to keep up with customer demand.
Sports betting is also vastly expected to become legal in half of the US by the end of this year. Morgan Stanley predicts that about $10 billion will be generated from sports betting, out of the $15 billion iGaming and sports betting market expected by 2025. The investment bank’s analysts forecast for last year’s US online wagering market, at $2 billion, was outpaced by $1.1 billion, reaching a total of $3.1 billion.