New research commissioned by the American Gaming Association (AGA) shows that illegal or unregulated gambling still has a major presence across the US.
a loss of revenue for licensed companies of almost $54bn
On Wednesday, the organization released data from a study by The Innovation Group revealing that $673bn, or almost one-third of the country’s expenditure on gambling, doesn’t go through legal operators. This means a loss of revenue for licensed companies of almost $54bn, with state governments missing out on $15.3bn in potential tax revenue:
The AGA last compiled a report of this kind in 2022; the illegal market has expanded 22% since then. The unregulated market is made up of three main verticals. Sports betting through offshore websites or illegal bookies, unlicensed online casinos offering slots and table games, and unregulated gaming machines in the likes of bars and convenience stores.
The biggest culprit is the 625,000+ unregulated machines around the country, which generate estimated revenue of $30bn each year, compared to $18.6bn for illegal iGaming, and $5bn for unlicensed sports betting.
Talking about the latest research, AGA President and CEO Bill Miller said that “bad actors operate in the shadows with zero consumer protections, no responsible gaming obligations, and no economic return to the communities they exploit.” He called for stronger enforcement in the US to battle these illegal operators and to work with international partners to try to block offshore platforms and hold them accountable.
