TLDR Fully regulated U.S. states see offshore gambling drop to about 38%, compared to 79% nationally States with both online casino and sports betting retain around 62% of market value domestically Betting-only states still lose roughly 74% of gambling value to offshore platforms New Jersey and Michigan lead with domestic capture rates above 70% No U.S. state has fully eliminated offshore gambling activity, but full regulation cuts it significantly
The United States has been legalizing online gambling state by state for over a decade now. But offshore platforms still control most of the market. New data from Blask’s 2025 U.S. iGaming landscape analysis breaks down exactly how much regulation actually helps.
Across all analyzed U.S. states, the national average offshore share sits at 79%. That means only 21% of online gambling value stays within domestic, regulated markets.
The numbers shift depending on the type of regulation each state has adopted. States that offer both online casino games and sports betting perform far better at keeping money onshore.
Fully Regulated States Lead in Domestic Capture
New Jersey captures about 73% of its online gambling market domestically. Michigan does even better, retaining roughly 75% of its market value within licensed platforms.
On average, fully regulated states keep around 62% of their gambling value domestic. That brings offshore share down to approximately 38%.
These states give players access to the full range of legal options, including slots, table games, and sports betting. That combination appears to be the key factor in pulling users away from unlicensed sites.
The contrast with betting-only states is sharp. States that have legalized sports betting but not online casino games average about 74% offshore share.
New York, the largest state market by consumer expenditure on betting, sees roughly 61% of its value go offshore. Ohio