Slow start, gradual improvement for US Internet gambling

ATLANTIC CITY, N.J. (AP) -- Gambling industry participants and analysts agree that Internet betting is off to a slow start in the U.S.

But despite challenges including hesitation by banks to approve credit card payments for online bets, casinos say and their observers say gradual improvement is happening.

Panelists at a major gambling conference in Atlantic City said Wednesday that Internet gambling has great potential for growth.

Three states offer Internet gambling: New Jersey, Delaware and Nevada. Other states are considering doing so, including California and Pennsylvania.

In March, Morgan Stanley cut its estimate of the potential U.S. Internet gambling market by nearly half.

The firm now estimates the nationwide online betting market at $2.7 billion by 2020, down from an initial estimate of $5 billion.

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