Unlicensed operators control 74% of the US$90.1 billion (A$145.3 billion) online gambling market in the United States, according to a new report.
While legal online gambling revenue grew 36% last year, illegal revenue surged by 64%, data intelligence firm Yield Sec said after publishing the USA National 2024 report, which was commissioned by the Campaign for Fairer Gambling (CFG).
A total of 88% of U.S. online audiences were exposed to illegal gambling content on platforms including search, social media, streaming and apps, the firm said in a media release.
Unlicensed operators capitalised on major events such as the Super Bowl, March Madness, Copa America and the Olympics to drive traffic and convert users to their platforms.
“Despite the growth of legalised online sports betting and casino offerings in several states, illegal operators continue to outperform legal brands through prices, product range, and aggressive promotions,” Yield Sec said.
The firm said 2025 was a “tipping point” unless action was taken to stop and combat criminal operators, who outnumber legal entities 917 to 95.
Illegal gambling is every legal stakeholder’s problem, not someone else's.
"Illegal gambling isn’t just bigger — it’s bolder, faster, and smarter," Yield Sec CEO Ismail Vali said.
“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 licence.”
The report called for reforms such as improved enforcement, cross-sector collaboration, and data-led strategies to identify and remove illegal content.
Comparing states with differing legal frameworks, CFG founder Derek Webb said the U.S. approach to legalisation was “an unmitigated disaster”.
“Any pundit, commentator, legislator, regulator, lawyer or lobbyist selling legalisation alone as a cure for illegal online gambling should be ashamed,” Webb said.
