A new study reveals that unregulated online gambling platforms captured the majority of the $90.1 billion U.S. online gaming market in 2024, outpacing growth in the licensed sector. According to the USA National 2024 report from Yield Sec, commissioned by the Campaign for Fairer Gambling (CFG), illicit gambling operators accounted for 74% of total online revenue — approximately $67.1 billion — marking a 64% surge year-over-year.
In contrast, legal operators saw a 36% increase in revenue during the same period. Despite regulatory advancements and the launch of iGaming in additional jurisdictions such as Rhode Island, illegal gambling continues to expand more rapidly and broadly.
Widespread exposure and consumer engagement:
The study highlights that 88% of American internet users encounter illegal gambling content across a wide range of digital channels, including search engines, social media, streaming platforms, and mobile apps. This exposure has translated into high engagement and retention, with illegal platforms offering broader product options and aggressive promotions that often outcompete legal alternatives.
Yield Sec found that affiliates pushing illegal sites vastly outnumber those promoting licensed brands — by a ratio of six to one. Of the operators reviewed, 917 were illegal, while only 95 were legal, further amplifying their visibility and reach.
Large-scale events such as the Super Bowl, March Madness, and international competitions like Copa America and the Olympics served as gateways for attracting new players. These events were used by illicit operators to funnel users into casino games and other high-yield offerings. Illegal platforms also provide betting on prediction markets, including elections and tariffs — products typically unavailable through regulated channels.
“Illegals feature all products in all states, including casino and popular predictor marketplaces which illegals have hijacked to feature events such as election and tariffs betting alongside sports and financials,” the report explained.
Industry voices call for broader accountability:
CFG founder Derek Webb was sharply critical of how legal gambling has been promoted without addressing the underlying illegal market. “US legalization of internet gambling without a gameplan to tackle the illegal sector has been an unmitigated disaster. In California, where online gambling is illegal, the total population loss per capita for 2024 is $141. In comparison with New Jersey, where online sports and casino gambling are legal, the illegal loss per capita on sports is $103 and on casino is $169, being a total of $272, nearly twice as much as in California,” Webb stated in the official press release.
He continued, “Any pundit, commentator, legislator, regulator, lawyer or lobbyist selling legalization alone as a cure for illegal online gambling should be ashamed.”
Ismail Vali, Founder and CEO of Yield Sec, emphasized that solving the problem goes beyond regulation alone: “Let’s not pin this on gambling regulators alone. Their job is to supervise the licensed industry, not to chase criminals who never applied for a license. Illegal gambling is everyone’s problem – operators, law enforcement, media companies, social platforms, and governments all have a role to play.”
He added, “At Yield Sec, we show every legal stakeholder how to identify, expose, and remove crime from the marketplace – because until that happens, it’s your money that’s being stolen. For America in 2025, it’s time to kick crime out of online gambling.”
The Campaign for Fairer Gambling is urging lawmakers, industry leaders, and enforcement agencies to act swiftly to contain the unchecked rise of unregulated gambling. The report warns that 2025 could become a tipping point for the market if coordinated efforts are not undertaken to dismantle illicit operations.
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Vanja Mitic 2025-04-11 12:55:00
