A study from the association describes illegal gambling growing in the US.

Key Points

• The AGA has issued an updated black market assessment, which shows illegal market shares are falling for iGaming and sports betting.
• The report estimates that $673.6bn is bet each year in the illegal market.
• The illegal iGaming segment now brings in $18.6bn per year, rising 38% from the numbers in 2022.

The American Gaming Association (AGA) published a report stating Americans place around $673.6bn in bets each year outside legal channels, and this part of the market is up 22% from 2022. They also noted that the unregulated section holds just above 31.9% of the total US gambling share. Black market gambling in the US results in around $53.9bn annual revenue, while state gaming tax losses are at $15.3bn every year. Some of the findings seem worrying, but illegal operators now have a smaller share in iGaming and sports betting than they did in 2022.

US iGaming Market Outlook

The new AGA study estimates $466.2bn in bets go through illegal online slots and table games annually, making underground iGaming the black market’s largest sector. This total leads to about $18.6bn in revenue and a $4.8bn loss in state gaming taxes. The $18.6bn revenue figure has grown 38% since the 2022 data, and now just 24% of players use only regulated iGaming sites, down from 52% before. The number of users on both legal and illegal websites has gone up to 49%, tripling the rate from 2022.

US Land-Based Market Outlook

Illegal gaming at physical locations is lower than iGaming at an estimated $123.4bn each year, but this area creates a larger $30.3bn in earnings. The lost gaming taxes from land-based gambling top all sectors with $9.5bn annually. Unauthorised machines are called out in the report as a real problem, with more than 625,000 now running across the US, a number that is 7.7% higher than in 2022. These machines produce around $30.3bn per year and cost the states $9.5bn in taxes every year.

US Sports Betting Market Outlook

On sports betting, the AGA report notes $84bn as the estimated illegal yearly wagering, with $5bn in revenue and a $1bn annual loss on taxes. This area now sees its black market share slide from 36% in 2022 to currently sit at 24%. Yet around one in ten players in the country still choose only illegal sportsbooks.

AGA’s Comments

AGA President and CEO Bill Miller commented: “Illegal gambling operators earn huge amounts from US players, take tax money away from state budgets, and make legal market efforts weaker. He called for strong national action to deal with this illegal business, which causes states to lose money and puts people at risk. “They offer nothing to protect players, never support responsible gaming, and do not help the places where people live. Stopping illegal operators takes tougher rules at home and keeps up cooperation with other countries to close down offshore sites and punish them.”