According to a recent report from the American Gaming Association (AGA), illicit and unregulated gambling in the US now is bringing in $53.9 billion (£39.8 billion) a year.
This is a 22% increase since 2022 and accounts for almost one-third (31.9%) of the total gaming market.
Even though the legal gambling industry is expanding, the illegal market is also continuously growing and stealing billions of dollars that could be used to fund infrastructure, healthcare, and education.
According to the report, illegal iGaming is becoming more and more common, unregulated skill machines are being installed in the bars and retail establishments.
“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 last report in 2022,” AGA stated.
A significant portion of betting activity is still controlled by illegal gambling operators, even though legal sports betting has decreased the black market’s share from 36% to 24%.
Alarming Scale and Impact of Illegal Gambling
An estimated $84 billion (£62 billion) in wagers are handled annually by illegal bookmakers and offshore websites, which make about $5 billion (£3.6 billion) in profit but lose $1 billion (£739,000) in state tax revenue.
With usage significantly higher than in prior years, offshore slots and table games generate $18.6 billion (£13.7 billion) annually.
Bill Miller, AGA President and CEO, underscored the urgent need for action: “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.”
In order to steer players toward legitimate, regulated gambling sites, the AGA is in favor of more public awareness campaigns and stricter regulation of unregulated “skill” machines.
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