Goldman Sachs Thinks Online Gambling Is A Winner
Online gambling and sports betting continue to generate huge growth rates and make their investors rich. Goldman Sachs believes these strong growth rates will continue for the next ten years. Popular online gambling sites like Woo Casino login are leading the industry, and their success is expected to continue for many years to come.
Goldman Sachs believes the world’s increasing interest in online gambling combined with easing legal restrictions and improved technology has turned the online betting industry into a must invest market. They expect 40% of Americans to gamble regularly and over 20% of Americans to spend at least $100 per month on online casinos or sports betting sites.
The investment banking giant has valued the US market at $1.3 billion today but expects it to reach as high as $40 billion in 2034. They expect the industry to grow at over 30% per year for over ten years. Very few industries can come even close to achieving this level of growth.
While Goldman Sachs estimations appear high, other industry analysts are also expecting huge growth, with many proclaiming the US market will be worth over $20 billion within five years.
Why Will Online Gambling Experience So Much Growth?
Online gaming companies are classified as being apart of the consumer discretionary sector. Based on Goldman Sachs predicting a compound annual growth rate of over 30% for the next decade for online gambling operators, this makes them the highest growing industry in the sector, even higher than e-commerce which is expected to grow at 16% over the same period.
Goldman Sachs said no retail sector industry would even have a growth rate of over 20%, let alone 30% to 40%.
Goldman Sachs is very bullish on online businesses in general but believes online gaming sites will outperform other internet-based companies.
In contrast to offline physical gambling operators, online providers face lower start-up costs and much lower ongoing costs while still being able to offer similar services. The result is online gambling providers can achieve much higher profits due to lower expenses compared to traditional brick and mortar casinos and bookmakers.
Goldman Sachs specifically commented that the lack of physical products and distribution centers would ensure online companies have higher returns on investment and require significantly lower levels of capital to start and operate the business.
The low costs of running an online gaming company combined with the increasing acceptance of gambling in mainstream society, rapid legalization, and the already billions being gambled has Goldman Sachs predicting a bright future for the online betting industry.