- Major banking firm Goldman Sachs sees the sports betting and iGaming market outperforming e-commence over the next ten years.
- Goldman Sachs projects that the internet gambling market could be worth up to $39 billion in 2033.
NEW YORK – As the online gambling and online sports betting market continues to expand, major banking firm Goldman Sachs has stated their expectations for the booming industry.
With the widespread legalization of state-regulated sports betting platforms across the US since the repeal of PAPSA in 2018, companies like Penn National Gaming, Caesars Entertainment, and brands like DraftKings have seen extreme growth.
Goldman Sachs forecasts the industry to continue this path of enviable compound annual growth over the next decade as more and more states begin to sign into law and regulate the pastime.
As more physical and online sportsbooks platforms are brought into the fold, bettors aren’t the only ones putting down money on the bookies.
In a letter to clients, Goldman Sachs states that they believe the industry will continue to see major growth over the next ten years.
“We expect a combination of favorable legislation and consumer adoption to drive growth in U.S. online sports betting and internet gambling (i-Gaming) from $900 million/$1.5 billion markets today to $39 billion/$14 billion in 2033, equating to 40 percent/27 percent CAGRs for over a decade.”
Many of the biggest sports gaming companies like Penn National and Caesars Entertainment have seen huge growth in the stock market over the last year.
Penn National ($PENN) is up 763% on the year, and was just introduced into the S&P 500 this past week.
Caesars Entertainment ($CZR) is up a whopping 1,132% on the year going from $7 a share to $85 where it is currently trading at.
The Roundhill Sports Betting and iGaming ETF $BETZ is a conglomerate of all intrinsic sports betting stocks currently trading on the NYSE. The ETF was debuted in June of 2020 at $15.75 a share and is currently trading at $31.35 a share, a near 100% increase.
This growth could be just the tip of the iceberg for the sports gambling market as only 14 of the US’s 50 states have begun regulating online sports betting and only a handful regulate USA online gambling so far.
With the mounting pressure of potential profit, it seems like only a matter of time before sports betting is accepted in the majority of US states.
When that time comes it will only expand on this ever-growing market for gamblers and investors alike.