Morgan Stanley was one of the entities to establish unrealistic expectations in sports betting. The failure of the sports betting industry for not achieving these lofty objectives is one of those reasons that made states to pass legislation regulation regarding online casinos and poker.
Examples of the unrealistic prediction made in sports betting industry
Morgan Stanley’s impractical estimation has taken the entire sports betting industry on a toss. According to him by 2020, online sports gambling will yield around $9.3 billion every year. It is yet to achieve half of that figure in 5 years in total.
20 states will be regulating e- gambling. Now, as per an article in the New York Post, the analysis of this company has speculated that the controlled sports betting market to be worth $216 bn by 2025. Ufakick is a reliable sports betting and online casino that allows you to place bets on online sports.
Why do people believe Morgan Stanley will again fail in making predictions?
The baseless prediction of Morgan Stanley was made on the basis of the average loss that the UK and Australian sports bettors have experienced multiplied by the US population. It is an imaginary method to compute market value in view of the UK, U.S. and Australian markets that are very diverse in structure. Also, the forecast assumes that every U.S. state will control sports betting in the coming 7 years.
That is impossible to happen. The states located in the southernmost areas of the world are less likely to control betting in sports when they do not permit commercial gambling. Voters in Florida will put a halt to the growth of betting. The lawmakers in Illinois take a lot of time to authorize legislation on gambling. It is believed that the year 2025 will come and go by the time any relevant progress will happen in the Prairie State.
The argument that nations will control sports betting as they require the fund from tax proceeds is nonsense. If that was the scenario, then more than 4 states would have controlled e-betting by now. As per the recent report printed by Pew Charitable Trusts, it was shown that “sin taxes” will be an untrustworthy revenue source that can result in budget discrepancies in the long run.
Why Offshore Sports Betting Will Be Preferred?
Even if US jurisdiction were to control sports gaming, the acceptance of offshore locations will put a limit on how much amount is a wager on the controlled market. As per the projection made by “The American Gaming Association, around $150 billion every year will be gambled with offshore workers. These workers have a reputable clientele, but also offer improved chances of odds on sports events than legally controlled operators.
Will The History Repeat Itself?
If impractical expectations are set and the betting market fails to deliver, then it will put a brake on further extension. This is certainly the case with respect to online casinos and online poker. When the estimation of Morgan Stanley went pear-shaped, then it can lead to collapse of the firm, or stop other states to pass legislation to control sports gambling.
So, these are the actual risks in setting impracticable expectations in sports gambling.