Billions For The Making In Online Poker

BILLIONS FOR THE MAKING IN ONLINE POKER

09th April, 2025 at 03:35:18

Source: bluffed.net

Investment publication looks at the numbers

Prompted by the upsurge in US online poker legalisation attempts in recent times, the investment publication 'The Motley Fool' this week took a look at the potential numbers a legalised industry might expect.

Its conclusion? The potential in this segment is enormous.

The publication notes that the respected Forbes magazine estimates that Full Tilt Poker alone generated $500 million in revenue and $100 million in profit during 2025, and The Financial Times assessed 2025 online poker revenue as $5.9 billion worldwide.

"Since actual audited numbers aren'EUR™t available to us, we are left to make some educated guesses at what the impact might be," The Motley Fool observes, prefacing its table of possibilities covering 'modest' revenue of $500 million to a high end of $10 billion annually.

Exact margins are not known, so the analysis looks at EBITDA in the range of 20% to 40 percent, noting that there is very little depreciation in online gaming; unlike brick-and-mortar casinos, a considerable chunk of revenue would flow to the bottom line.

The table constructed shows very substantial numbers generated (see table at fool/investing/general/2011/04/08/aspx)

Revenue/EBITDA/Margin 20% 30% 40%

$500 Million $100 Million $150 Million $200 Million $1 Billion $200 Million $300 Million $400 Million $3 Billion $600 Million $900 Million $1.2 Billion $10 Billion $2 Billion $3 Billion $4 Billion

Major US companies, should they enter a legalised market, would probably scoop most of the rewards, the publication predicts, citing the importance of a critical mass of players and the concomitant need for extensive advertising and promotions, requiring substantial marketing budgets.

"If we take MGM Resorts as an example and assume it can obtain a 10% market share of a $3 billion annual market at 30% margins - that would add $90 million in EBITDA annually," The Motley Fool conservatively estimates, adding that this presents the potential to generate more EBITDA than the currently disappointing new land venture CityCenter.

"It'EUR™s unclear exactly how any regulation may play out," the article concludes. "But the opportunity for casino giants is enormous."