Tabcorp’s earnings are under threat since UK bookmaker giants joined the market, but Morgan Stanley might have a solution for that.

Morgan Stanley has cut Tabcorp’s earnings forecast due increasing pressure from foreign-backed online bookmakers such as Paddy Power, William Hill, Bet 365 and Ladbrokes.

The investment bank estimates that the Australian wagering operator’s share of online wagering turnover to fall 23% in 2018, down from 30% in 2010. It also expects earnings per share of 23¢, 26¢ and 28¢ in the 2016-18 financial years respectively compared with 24¢, 27¢ and 30¢ previously.

However, Morgan Stanley thinks that Tabcorp is in a best position to slow the market share loss by venturing into the growing market of fantasy sports.