US Gaming Body Reveals Alarming Growth of Illegal Gambling
The American Gaming Association (AGA) has published a new report revealing that illegal and unregulated gambling now generates $53.9 billion annually in the United States. This figure represents nearly one-third (31.9%) of the total gaming market and a 22% increase since 2022.
LISTEN TO THIS ARTICLE:According to the association, the unregulated activity is diverting $15.3 billion in potential state tax revenue that could fund education, healthcare, and infrastructure.
A statement from the association read: “Driven by a sharp rise in illegal iGaming, expanding use of unregulated skill machines, and persistent illegal sports betting, the illegal market has grown 22% since the American Gaming Association’s last report in 2022. Growth in the legal market in recent years has kept the illegal market’s share of total U.S. gaming revenue largely steady, with illegal operators capturing smaller shares of sports betting and iGaming revenue but illegal operators still account for nearly one-third (31.9%) of the total U.S. gaming market.”
The research analyzed data from a survey of 2,454 US adults, focusing on their betting habits and activities in both regulated and unregulated markets over the past year.
Main Sources of Illegal Revenue
The report noted that unregulated bookmakers and offshore websites handle about $84 billion in wagers annually, generating $5 billion in profit and costing states $1 billion in lost taxes. While legal sports betting has cut the black market’s share from 36% to 24%, illicit operators remain active.
Additionally, offshore slots and table games produce $18.6 billion a year, with usage up sharply since 2022. Only 24% of online players now use exclusively legal platforms, down from 52% a few years ago.
Over 625,000 slot-like devices in bars, stores, and other venues rake in $30.3 billion annually, depriving states of $9.5 billion in tax revenue. Their numbers have risen nearly 8% in three years.
These Illegal gambling operators operate outside consumer protection rules, skip age checks, offer no safeguards for problem gamblers, and avoid dispute resolution processes. The result is heightened risk for vulnerable players and a drain on public resources.
More Business News
AGA’s Call for Action
The association is urging tougher enforcement against offshore actors, clearer regulation of “skill” machines, and greater public awareness to steer players toward legal, regulated options.
These bad actors operate in the shadows with zero consumer protections, no responsible gaming obligations and no economic return to the communities they exploit. Combating them requires not only stronger US enforcement, but also continuing to work closely with our international partners to shut down offshore operators and hold them accountable.
RELATED TOPICS: Business
Review this New Post
Leave a Comment
User Comments
Comments for US Gaming Body Reveals Alarming Growth of Illegal Gambling