The two biggest successful consumer-related stories are the sports wagering market and domestic online casinos. According to Goldman Sachs, for over a decade, these two markets are ready to make a desirable compound annual growth rate.
According to the analysis of investment banks, market estimates for iGaming and sports wagering are more optimistic and addressable to date.
Goldman, to his clients, said that we expect favorable legislation and consumer adoption. As combinedly, they can drive growth from $900 million/1.5 billion to $39 billion/14 billion as of 2033.
Over a decade, the compound annual growth rate may drive to equate 40 percent/27 percent.
Forecasting on the sports wagering market is much higher than other research firms, and sometimes it is behind the estimation of other operators. In the next few years, $22 billion could be worth the US’s online sports betting market. But it requires legalization 100 percent.
The consumer sector is one of the traditional classifications of gaming companies. Goldman raised alike eye-catching points for investors and operators.
The forecasted growth is 40 percent for sports wagering and 27 percent for internet casinos which is excess over the forecasting for e-commerce by 18 percent over the next decade except for online travel bookings. Sports wagering companies attract wall street, and Wall street broadly enthusiastic about it. Internet is the main reason for this enthusiasm regarding sports wagering companies.
Off-line gaming requires a physical distribution center, and it requires much more capital than online gaming across categories. More preciously, iGaming and sports betting do not require physical distribution centers, limiting the capital requirement for online gaming.
Specific Names Goldman Likes
Equities in the iGaming and sports wagering universe are going to be expansive increasingly. Four stocks face price targets by Goldman, and the supplies are Caesars Entertainment (NASDAQ: CZR), DraftKings (NASDAQ: DKNG), Penn National Gaming (NASDAQ: PENN), and Rush Street Interactive (NYSE: RSI).
Goldman is also highlighting positive social aspects of sports betting. Such as bolster network effects, the value of media integration, etc., the stock boosted from $153 to $139, according to Goldman estimates.