A new, comprehensive report from the American Gaming Association (AGA) has revealed the staggering scale of the illegal gambling market in the United States, estimating that Americans wager approximately $673.6 billion through unregulated channels annually.
This figure represents a significant 22% increase since the AGA’s last report in 2022 and underscores the persistent challenge facing the legal industry and regulators.
The report indicates that the illegal US gambling market now accounts for just over 31.9% of the total U.S. gambling landscape, generating an estimated $53.9 billion in illicit revenue each year.
This activity results in a massive loss for public services, with states missing out on an estimated $15.3 billion in potential gaming tax revenue.
The illegal iGaming sector remains the dominant force within the black market, with an estimated annual handle of $466.2 billion wagered on unlicensed online slots and table games.
This generates $18.6 billion in illegal revenue and costs states $4.8 billion in lost taxes. Alarmingly, the report found that the share of players using both legal and illegal iGaming sites has tripled since 2022, rising to 49%.
The land-based illegal market, primarily driven by over 625,000 unregulated gaming machines, accounts for $30.3 billion in revenue and deprives states of $9.5 billion in taxes.
While the illegal sports betting market share has decreased from 36% to 24% since 2022, it still represents an $84 billion handle.
American Gaming Association President and CEO Bill Miller issued a strong call for action based on the findings.
Illegal gambling operators are thriving at the expense of American consumers, siphoning billions in tax revenue from state governments and undercutting the efforts of the legal market. It’s time for a national crackdown on the pervasive illegal market… These bad actors operate in the shadows with zero consumer protections, no responsible gaming obligations, and no economic return to the communities they exploit.
