Sports betting in the Covid era: an investment for the punter since Morgan Stanley believes that new sportsbook sites will bring growth to the economic market.
Morgan Stanley is regarded as one of the biggest financial entities in the world, and throughout the year, they have been very vocal when it comes to the betting markets. The firm believes that new sportsbook sites will definitely bring growth to the global economic market worldwide. Stanley envisages that by 2025 new sports betting sites will be the future an will evidently save the economy.
This prediction was made in April which in the days when Covid was still non existent and we all lived comfortably in a growing economy. Back in the days, punters were mainly focused on land based casinos, however only in the last 3 decades did new sportsbook sites and new online casinos take off in the United States.
Places like Cesars Palace and the MGM competed for players and to mark their footprint in the gaming business. But really and truly, is the future of gamblimg solely online? If we had to take a global look at what the online gaming and sports betting worlds are currently up to, many trends are focused on laws, regulations, markets and new licenses. The revolution of online gambling is all about a multi-market operation. In the year 2013 states such as Nevada, New Jersey and Delaware launched legal gaming laws, and launched a setup where new sportsbook sites can launch their operation. The growth in market promoted the Amateur Sports Protection Act (PASPA) that was launched by the Supreme Court in May 2018.
The good news is that American punters can now safely bet in 20 states in a legal fashion. Apart from that it is expected that the next two years will see another 40 states added to the mix. It is hoped that online casinos will also get the go ahead soon without the need for gamblers to use set ups just like VPNs to gamble. All will be legal …hopefully.
If we have a look at online operators and also US based companies such as Draftkings and FanDuel and other companies such as 888 and Points Bet, they already operate in a legal fashion in the US with a great business ethic and flourishing revenue. Other brands went all in and decided to have their own online brands such as Cesars since it was taken over by Eldorado and Penn National.
The United States has positioned itself as the prime online gaming destination of choice, which was a must in forward-looking investment plans for most online operators.
The Garden state aka New Jersey has been a favourable place where operators have set up shop and have seen a great growth in business and revenue. Would you believe it when we say that the last 7 years have seen a $100M growth that has solely derived from monthly sports betting stats. New Jersey has seen such a growth that other states have joined the same strategy. States such as Pennsylvania, Indiana, Colorado and even Illinois have joined the online gambling world and brought in great figures. The US has joined the Igaming world, and the business growth seen in the last few years is out of this world, with investors seeking to delve into this market and get a slice of the cake.
The sad news is that Covid hit home, and it has hit hard, especially in the US. The plan and the thoughts for investors was that the US would be the prime destination for igambling and sports betting, and the plan was to be the best worldwide in the next 10 years. Yet, when Covid-19 happened, the business was affected, with the gaming being at the forefront.
From March through May the forced lockdowns of physical properties saw traditional casino operators’ revenues crash 85% to 100%, with most of their employees, tens of thousands for the major operators, furloughed. Sport brands also suffered from the complete halt in sporting events, which saw the number of events to bet on dwindle and include esoteric sports such as Ukrainian table tennis and Taiwanese baseball.
As you and us both know, between March to May 2020, lockdowns were forced across the globe. People did not go to work and moved to working remotely. Almost all non essential businesses closed and casinos saw their revenues dip with 85% to 100%. People lost their jobs, as the world came to a natural halt. Sports stopped, so sports betting was non-existent. Some of the only events to bet on were when the Coronavirus will end, when the vaccine will be available and also who will be the next US president.
Some of the only businesses that made it through were the ones who looked to become more creative. The ones that pushed online events such as e-sports, and offered bonuses on poker and table games. New sportsbook sites moved to a remote location and also made sure that they started offering betting alternatives. Unfortunately, Covid-19 does not seem like it is going away any time soon, and will potentially roll over to 2021. Season such as NFL and College Football up in smoke.
We have seen football seasons being launched once again across the world, and this is one of the main reasons why the US is pushing hard for sports betting to be legalized asao. This could be the only solution to safeguard jobs, the economy as a whole and even businesses. The black market is flourishing, however it is best to have a legalised and regulated offering. This is how players can feel safe and bet in a complianced set up. The black market will feed on gambling addictions, whilst sites that have a gambling license need to adhere to laws, regulations and make sure that the player is safeguarded at all times.
One of the businesses that has seen growth lately is the e-commerce niche. The models of Amazon, Robin Hood and even Zoom have seen growth and have accelerated vastly in the last couple of months. New sportsbooks and even new casino operators can operate online with no need of physical offices. This is the future of gaming, the stock market and the economy as a whole. Just turn on your smartphone to keep up with the stocks of such brands like DraftKings, Golden Nugget and Nasdaq. Welcome to the future.
About sports betting you cand read also HERE.