Research Study Shows California Online Poker Market Could Be Worth Nearly $400 Million
According to a recent research study conducted by consultancy Academicon and market research company PokerScout, the legalization of online poker in California has the potential to generate up to $263 million in revenue in its first year, and up to $384 million in the 10th year.
While $263 million was the maximum figure that the study listed, the average estimate showed that the state would likely bring in anywhere between $217 million and $263 million.
In order to reach these figures, researchers from the aforementioned groups took a look at data from 2009 and 2010 when unregulated online poker was still present in America. From there, figures were narrowed down to find that 178,300 online poker players located in California generated $867 in average revenue for online poker websites. These figures were then extrapolated to find that at the time a roughly $155 million market was present in California.
At this point in time, California made up an impressive 16% of all revenue for US based online poker players. The US state’s online poker revenue accounted for four percent of the total world market.
While the market is expected to grow quite rapidly, Dr. Ingo Fielder, an author of the study, made note that single-state regulation would potentially hinder the growth.
“The size of the market depends strongly on the decision to either limit the player pool to in-state residents or participate in a federal or international network of players,” said Fielder.
Despite this notion, regulated and restricted online poker in California is still expected to turn in a revenue of at least $217 million in its first year.