New Study Reveals Alarming Growth of US Illegal Gambling
A new study has revealed that nearly three-quarters of the US online gambling market, valued at $90.1 billion, is controlled by unlicensed gambling operators.
LISTEN TO THIS ARTICLE:The report, 'USA National 2024,' was published by data intelligence platform Yield Sec and commissioned by the Campaign for Fairer Gambling (CFG). It found that the unlicensed sector grew by 64% in the past year, dwarfing the 36% growth in the regulated sector.
According to the report, nearly 9 in 10 (88%) of US online users are targeted by illegal gambling content across various platforms, including search, social media, streaming services, and mobile apps. It also highlights that illegal platforms outperform licensed ones in user engagement and retention.
The study explains that the growth of US legal online gaming market hasn't slowed illegal operators, who continue to attract customers with better deals, a wider selection of games, and aggressive advertising. It reveals that six times as many affiliates promote unregulated operators over licensed ones.
Furthermore, the report noted that illegal operators capitalize on major events like the Super Bowl, March Madness, Copa America, and the 2024 Olympics to drive traffic, promote their platforms, and increase revenue.
During these events, they cross-sell profitable casino products and bolster their appeal by offering markets for casino games and sports betting across all states.
CFG is urging lawmakers, regulators, and industry leaders to collaborate to protect consumers, secure state revenues, and crack down on organized crime.
US legalization of internet gambling without a game plan 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.
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Yield Sec’s Call to Action
Yield Sec is dedicated to equipping legal stakeholders with the tools to identify, disrupt, and remove organized crime from the online gaming space. The firm warns that 2025 will be a make-or-break year for the US online gaming industry, where failure to address illicit operators could have far-reaching consequences.
uote "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.
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