TLDR Unlicensed offshore gambling platforms generated 74% of US online gross gambling revenue last year, with the total digital market valued at roughly $90 billion The illegal gambling market grew 64% year-over-year compared to just 26% growth for the regulated market Over 900 active illegal platforms were identified operating in the US, versus fewer than 100 fully licensed operators Regulated platforms capture only 12% of total audience exposure, while offshore operators leverage major sporting events and media channels for promotion In Ohio, unlicensed platforms captured 85% of the market, representing over $5 billion in gross gaming revenue
The US online gambling market is overwhelmingly controlled by unlicensed offshore operators, according to a new market intelligence report compiled by Yield Sec on behalf of the Campaign for Fairer Gambling.
The data shows that illegal platforms generated 74% of the national online gross gambling revenue last year. The total digital market reached a valuation of roughly $90 billion during that period.
Regulated and licensed platforms accounted for the remaining 26% of the market. That segment generated approximately $23 billion in total revenue.
The growth gap between the two sectors is widening. The regulated online gambling market saw a 26% increase in income over the previous year.
But the illegal market segment grew by 64% in the same period. Industry experts point to several structural advantages that offshore operators hold over their licensed counterparts.
Unlicensed Platforms Avoid Taxes and Regulations
Unlicensed platforms completely avoid local taxes and state regulations. This allows illicit operators to offer customers more profitable promotional benefits with fewer operational constraints.
The study identified more than 900 active illicit platforms operating in the US. Fewer than 100 fully licensed legal operators were counted by researchers.
Licensed digital operators also face serious visibility challenges. The report indicates that