Morgan Stanley the American – multi-national financial services corporation, who has its headquarters in New York and operates in 42 other countries. They have over 1.300 offices and 60,000 employees. Under management or supervision the company has a reported US$304 billion in assets. The company has now predicted that by the year 2020, in the USA online gambling will be producing revenues, that are as large as the revenues that are being produced by Atlantic City, and Las Vegas gambling markets.
Morgan Stanley estimates that $9.3 billion will be reported for online gambling markets by 2020. This is a substantial increase of $6.2 billion from Las Vegas in 2012 and $3 billion in Atlantic City. Representative from Morgan Stanley say that their estimates were conservative. He continued that Boyd Gaming is considered to be one of the largest stock plays, that is represented as potential, in the American Online Gaming.
The analysis on Boyd Gaming say that they view BYD as being the stock best position, in the US coverage that will benefit from Online Gaming, presently BYD has a $710 million cap on the market and it is 7x levered, they expect that they will generate about $634 million of 2013’s EBITDA.
The representatives also stated that the other operator, that was perfectly positioned for gaming online, is the MGM Resorts International, and they have a ‘market cap’ of $6 bn, and they expect that it will operate approximately $2 billion of the EBITDA in ‘13e.
The question on the future is will online gaming keep bringing returns that are solid? In Europe they are feeling the pinch, punters are struggling to make their normal financial needs, and are therefore leaving internet gaming to the stockbrokers.
Many speculate that the declining amounts of money being spent as being a sign that the ‘bubble is about to burst’, and others say that when the going gets tough people play online games to escape from their problems.