New research from the American Gaming Association (AGA) reveals that Americans wager nearly $674bn annually with illegal and unregulated operators, generating $53.9bn in illicit revenue. This shadow market costs states an estimated $15.3bn in lost tax revenue each year. The report warns that these operatorsmmany running on a massive criminal scale are capturing nearly one-third of the US market while offering zero consumer protections.
Key findings show illegal online casino revenue surged 38% since 2022, and almost half of online players now use both legal and illegal platforms. Illegal sports betting remains widespread, with $84bn wagered annually through unregulated channels. Over 625,000 unregulated gaming machines are also active nationwide, posing a major enforcement challenge.
The AGA is calling for stronger regulatory action and international cooperation to combat this threat and safeguard both consumers and state revenues.
