Goldman Sachs: US Online Gambling To Be Worth $12 Billion

In an investment note issued to investors recently, Gold Sachs predicted that the US online poker and casino markets will soon be legal and could be worth $12 billion.

In an investment note published recently, Goldman Sachs predicts that online poker and casinos will eventually be legalized in the United Stated. The 140 year old financial services giant also predicted that rapid growth will follow the legalisation, creating a combined marketplace that could be worth $12 billion.

The report stated that the US poker market was worth $1.5 billion in 2008, based on calculations taken from Party Gaming’s rake relative to its 9% market share. It stated that, “Were the market to be legalized, we believe that the size of the revenue opportunity could increase materially.”

“Based on an assumption of 30% penetration of offline poker players and $300 gross gaming revenue (GGR) per player, we estimate that a legal poker market could be worth $3 billion,” it continued. If the penetration were to increase to 45% and GGR to $400 per player in both the poker and casino markets, each of them would generate $6 billion in revenues.