Retail gambling and sports betting have come to a halt as the government has shuttered all non-essential businesses in the wake of the COVID-19 pandemic. While sports betting is trying to hold up via table tennis and other obscure events, online gambling is thriving. According to Wall Street giant Morgan Stanley, this sector of the gambling industry is destined for good days.

Sports betting will take off

All major sporting events have been canceled due to the coronavirus outbreak but Morgan Stanley believes that the industry will redeem itself when the pandemic is over. Pennsylvania, New Jersey, and Nevada are some of the states that allow web-based casinos. However, more than a dozen states have made online sports betting legal.

Thomas Allen, the gaming analyst at Morgan Stanley said,

“We believe the impact of COVID-19 could spur more states to legalize online casino and sports betting.”

Data suggests that his thesis is right. Gambling companies have suffered damage because of the pandemic but iGaming has helped them set off some of the losses.

The online gaming revenue for New Jersey increased to$64.8 million, with a 65.6% rise on a year-on-year basis last month. Pennsylvania, which has been offering iGaming since last year, saw its revenue go up to $24.3 million in March.

The numbers are encouraging

According to Allen, the state of New Jersey will see its online gambling revenue reached $700, even if it doesn’t include sports wagering figures. This statement echoes the claim that New Jersey has a booming iGaming business that will only grow bigger with time.

Jay Snowden, the CEO of Penn National Gaming said on Monday that Penn Interactive Ventures will “deliver meaningful revenue and profit contributions in 2021 and beyond.” However, he refused to give the exact figures. The online gaming business of the company includes Viva Slots, HollywoodRaces.com, and HollywoodCasino.com.

The Stars Group posted record revenue figures for the first quarter, which was fueled by a good performance from its online casino and PokerStars business. Some gamblers find it easy to move from physical games of blackjack and craps to their online peers. Sports betting enthusiasts look equally comfortable with the transition. In New Jersey, 8 out of 10 sports bets are placed online.

Allen expects that online betting will help in filling the revenue gaps created by the coronavirus pandemic. He said that the pandemic will have an adverse impact on the budgetary positions of states which could make them seek new tax sources. With sports betting legalization, a new revenue source could open up.