$67.1 Billion Came from Unregulated Sources, Study Finds
Unlicensed sportsbooks and casinos drove the majority of U.S. gambling profits in 2024, according to new research reported by Bloomberg. A study by Yield Sec revealed that illegal operators accounted for $67.1 billion, or 74% of the $90.1 billion total gross gaming revenue last year—a 64% increase from 2023.
Despite the rapid expansion of legalized sports betting and iGaming, offshore and unregulated platforms continue to draw millions of users. Many gamblers still turn to these platforms for novelty prop bets and broader betting options not available through legal channels.
Legal Market Faces Uphill Battle
Ismail Vali, founder of Yield Sec, pointed out a core issue: “Illegal gambling wins,” he told Bloomberg. Although 38 states allow sports betting and seven offer online casinos, illegal sites operate nationwide—without restrictions, taxes, or oversight.
California, which has not legalized online betting, generated $5.9 billion in illegal gaming activity in 2024. Meanwhile, even in regulated states like New Jersey, 40% of gambling revenue came from unlicensed operators.
Push for Federal Action
While state regulators have ramped up enforcement—sending cease-and-desist orders to platforms like Kalshi and multiple sweepstakes operators—advocacy groups say state-level efforts aren’t enough.
The Campaign for Fairer Gambling, which commissioned the research, is urging federal intervention. The group supports national regulation of sports betting and prediction markets to protect consumers and ensure revenue stays within the U.S.
As the legal market hits record highs—$77 billion in revenue last year, with $150 billion wagered—illegal gambling’s unchecked growth highlights a major challenge for the future of regulated gaming in America.
