Morgan Stanley has released a report on the state of global gaming, focusing on casino data from 2014. The research highlights VIP play, shareholder returns, and mass-market revenue as three indicators that will shape the industry in 2015 and beyond.

The firm estimates that global gambling took in $423 billion last year. Land-based casinos, however, only took in a 35% slice of that pie, with lotteries accounting for 29% and “other gambling” like pari-mutuel racing and sports betting raking in 28%. Worldwide online gambling operators collected $37 billion in revenue, or 9%.

US tribal and commercial casinos accounted for $146 billion of land-based revenue, with tribal operators taking in $67 billion. Asian and Australian casinos earned $61 billion and $18 billion came from the rest of the world.

The report tries to answer the question of whether simply building new casinos would result in growth of the local gaming market. The bank believes that to be true, but singles out hotel rooms as driving more revenue than gaming. If a market is already saturated, the report continued, then adding more casinos will only serve to cannibalize revenue from existing operators unless infrastructure improvements are made and non-gaming options become more diversified.

Morgan Stanley estimated that the global VIP market took in $36 billion, a quarter of the entire land-based casino revenues. Macau (pictured) has emerged as the world’s premier destination for high-stakes gamblers and accounted for $26.4 billion of the VIP market. Singapore came in second with $3 billion, or 8%, and Las Vegas made up just 4% of the total at $1.5 billion.

VIP revenue took an 8% hit last year mostly due to China’s crackdown on corruption and money laundering. The campaign has led to junket operators extending less credit to VIPs and prompted some to question the entire Macau VIP system. In turn, Australia has become a hot spot for Chinese high-rollers, who are increasingly traveling to more exotic destinations. The bank believes that VIPs are laying low until the heat from the corruption campaign dissipates and believes that junket operators will start setting up shop in new markets.

The firm gives good news to gaming investors, noting that stock buybacks are not affecting stock prices and that dividend payouts are sustainable. Sheldon Adelson’s Sands China finds itself in a particularly strong position with low capital expenditures along with low reliance on VIPs.

The bank’s five favorite gaming stocks include Australia’s Echo Entertainment, online gaming operator Playtech, Macau’s Galaxy Entertainment, US-based MGM Resorts, and Philippine operator Bloomberry Resorts.

In research released earlier this month, Morgan Stanley studied the US online gambling market and cut industry revenue estimates in half. In 2013, the report concluded that online gambling would be generating $5 billion by 2020. According to the new research, the bank now puts estimates at $2.7 billion by that year.

The bank pointed to the impasse in the California legislature that could very well delay any online gambling bill from being passed this year. They also highlight problems with the technological aspects of running an online gambling site along with issues with processing credit card deposits. The firm believes that some lawmakers are asking themselves if legalizing the industry is really “worth the hassle.”

Finally, the Adelson-backed legislation, Restoring America’s Wire Act, is making its way up the chain in Congress. While predicting that it had little chance of passing, Morgan Stanley is keeping an eye on what could become a disastrous law for the industry.