Morgan Stanley predicts the state of sports betting and online casinos in 2025 Katie Kohler, Play Pennsylvania · May 21, 2022 at 3:25 pm Morgan Stanley predicts the U.S. sports betting industry growing to $12.8 billion by 2025. Pennsylvania would account for $701 million in yearly gross gaming revenue with New York leading all states with $1.7 billion in revenue in 2025. It would represent a massive increase from $400 million in 2018 driven by widespread legalization. In 2021, sports betting revenue was $4.3 billion. FanDuel (30%) and DraftKings (23%) are expected to be market share leaders in 2025. In the “US Sports Betting and Online Gambling Primer 3.0” released in May, Morgan Stanley analysts took a deeper look at the sports betting and iGaming industries and forecasted the future. Today, iGaming is legal and live in seven states including Pennsylvania and New Jersey.