Illegal Online Gambling Operators Seize 74% of U.S. Market

A newly released report from data intelligence firm Yield Sec, commissioned by the Campaign for Fairer Gambling (CFG) and highlighted by Bloomberg, shows that illegal online gambling operators now hold a commanding 74% share of the $90.1 billion U.S. online gambling market. The USA National 2024 report outlines that while revenues for legal operators increased by 36% last year, illegal operators saw an even more dramatic 64% rise, nearly doubling the growth pace of their licensed counterparts.

Illegal Gambling Content Reaches Most Online Audiences

According to the findings, 88% of American online s are encountering illegal gambling content across search engines, social media, streaming services, and apps. Despite the proliferation of legalized online sports betting and casino offerings across multiple states, unregulated platforms continue to outpace licensed competitors, buoyed by broader product offerings, more aggressive promotions, and competitive pricing.

The report further details that these illicit operators are not only reaching more individuals but also engaging and retaining them at greater rates. With s promoting illegal sites outnumbering those endorsing legal brands by a six-to-one margin, the illegal market’s grip on American consumers remains firm and persistent.

Key sporting events such as the Super Bowl, March Madness, Copa America, and the 2024 Summer Olympics have provided fertile ground for illegal operators to attract new s. These high-profile events spurred traffic surges, enabling illegal platforms to promote lucrative casino products and diversify their offerings to maximize consumer spend.

Unregulated sites offer a vast range of products without geographical restrictions. They often bundle sports betting with casino games and emerging “predictor” markets, where s can wager on political events, tariffs, and financial markets — a product range generally inaccessible through legal operators.

Derek Webb, founder of the Campaign for Fairer Gambling, stated: “US legalization of internet gambling without a gameplan to tackle the illegal sector has been an unmitigated disaster. In California, where online gambling is illegal, the total population loss per capita for 2024 is $141. In comparison with New Jersey, where online sports and casino gambling are legal, the illegal loss per capita on sports is $103 and on casino is $169, being a total of $272, nearly twice as much as in California. Any pundit, commentator, legislator, regulator, lawyer or lobbyist selling legalization alone as a cure for illegal online gambling should be ashamed.”

Yield Sec Urges Broad Collaboration to Combat Crime

Ismail Vali, Founder and CEO of Yield Sec, emphasized the need for collective responsibility in addressing illegal online gambling, remarking:
“Let’s not pin this on gambling regulators alone. Their job is to supervise the licensed industry, not to chase criminals who never applied for a license. Illegal gambling is everyone’s problem – operators, law enforcement, media companies, social platforms, and governments all have a role to play.
At Yield Sec, we show every legal stakeholder how to identify, expose, and remove crime from the marketplace – because until that happens, it’s your money that’s being stolen. For America in 2025, it’s time to kick crime out of online gambling.”

Yield Sec’s report warns that 2025 could represent a pivotal moment for the U.S. online gambling industry. Without decisive action, illegal operations are poised to entrench their dominance even further. CFG is urging lawmakers, regulators, and industry leaders to collaborate in order to protect consumers, secure state tax revenues, and eliminate criminal elements from the marketplace.

The USA National 2024 report outlines several critical statistics:

• 917 illegal online gambling operators are actively targeting U.S. players, compared to just 95 licensed operators.
• 668 s are promoting illegal gambling platforms, while only 106 are ing legal brands.
• 88% of American online audiences are exposed to illegal gambling content.
• Illegal gambling generated $67.1 billion in revenue in 2024, while legal platforms collected $23 billion.
• Illegal online gambling revenue surged by 64% over the past year, nearly twice the 36% growth rate of the legal sector.

Both Yield Sec and CFG stress that immediate, coordinated action is essential if the U.S. hopes to protect its digital gambling ecosystem and stem the flow of consumer dollars into illegal operations.

Source:

‘’Illegal Gambling Dominates U.S. Online Market, Report Finds’’, news.worldcasinodirectory.com, April 11, 2025.