Almost three quarters of US online gambling money went to illegal websites in the first half of 2025, says a new report from Campaign for Fairer Gambling (CFG). In the $52 billion market, a small $13.3 billion went to legal companies, while $38.7 billion went to illegal operators. This shows that most online players are still using unregulated sites.

The report, released on 8 January, shows the black market’s share is largely unchanged from last year, with illegal operators still taking 74% and legal ones only 26%. CFG warns that without action, the black market will continue to dominate the US online gambling market.

Black Market Still Winning

Even though more states are legalising online gambling, illegal operators are still growing fast. The report found that 82% of what people see when they search for online gambling in the US comes from illegal or unregulated sites.

This means many players are being directed to unsafe platforms before they even make a choice. The total market is getting bigger, but there is little real effort by authorities to stop illegal gambling.

CFG founder Derek Webb said the situation is getting worse. He warned, “There is still no evidence of meaningful action against the black market at either the state or federal level. The numbers show that as the total market continues to grow, illegal operators share in that growth.”

Crypto Gambling Raises Fresh Alarm

One of the most worrying parts of the report is the rapid growth of crypto gambling, which now makes up 28% of the total US online gambling market. Even more concerning, it accounts for 37% of all illegal gambling revenue, totaling about $14.4 billion in just six months.

This trend shows that digital currencies are helping illegal operators avoid rules and reach more players without being tracked.

Call for Stronger Action

Ismail Vali, president of Gaming Compliance International and former CEO of Yield Sec, said legalising gambling is not enough. He stated, “Legalisation alone will not remove or reduce unregulated gambling. Legislation needs monitoring, policing, enforcement and optimisation to fulfil the fundamental duty to identify, reduce and remove unregulated gambling across every facet of the ecosystem.”

He added, “As the perfect storm rages across America’s online gaming marketplace in 2025, the sense of chaos could not be clearer. Taking back control, at the state and federal levels, and enabling the abilities of legal operators to make the money they should, to benefit American commerce, community and consumers, will only come via one path that must impact policy, process and practice: the path of MPEO – Monitor, Police, Enforce and Optimise.”

CFG warns that without urgent action, the black market will continue to take the largest share of the US online gambling market.