Skip to content

Illegal online gambling in the US hits $67 billion despite legal growth

Unregulated gambling still thrives—even in states with legal betting. Why do players risk $67 billion on shady platforms with no payout guarantees?

The image shows a man playing a slot machine with the words "Jackpot" on it. He is surrounded by a...
The image shows a man playing a slot machine with the words "Jackpot" on it. He is surrounded by a board with text and pictures of fruits, suggesting that he is playing online casino games.

A new study has revealed the scale of illegal online gambling in the US, where players spent $90.1 billion last year. Of that total, $67 billion—nearly 74%—went to unlicensed operators. The findings come from research commissioned by the Campaign for Fairer Gambling, which compared legal and illegal iGaming markets across the country. The study highlighted a stark contrast between regulated and unregulated gambling. While the legal market grew by 36% after Rhode Island launched online betting, illegal platforms still dominated. Even in states with licensed gambling, many players continued using unlicensed sites due to aggressive promotions and fewer restrictions.

Unlicensed operators pose significant risks to players. Unlike regulated platforms, they do not guarantee payouts for winning bets. The research also found that around 90% of US consumers had encountered illegal gambling content through media channels. Derek Webb, the campaign's lead, criticised the assumption that legal gambling alone would eliminate illegal activity. He warned that without further reforms, unlicensed operators would keep thriving. The Campaign for Fairer Gambling has now called for stricter regulations to protect the legal market and its players.

The study confirms that illegal gambling remains widespread, despite growth in the legal sector. With $67 billion lost to unlicensed operators last year, the findings underscore the need for stronger enforcement. The Campaign for Fairer Gambling has pushed for reforms to safeguard both players and the regulated industry.

Read also: