Study Shows Unregulated Betting Sites Winning in the US
A recent study has revealed that unregulated offshore sports betting sites continue to dominate the US market despite the expansion of legalized sports gambling. Bovada and similar unlicensed online gambling platforms are winning the race against DraftKings and other licensed platforms.
LISTEN TO THIS ARTICLE:According to the study, nearly 300 different offshore sportsbook brands currently accept wagers from US bettors. The research, conducted by the firm Blask in collaboration with Next.Io, suggests that the financial scale of offshore operators is roughly twice that of legally sanctioned sportsbooks. This finding highlights the persistent stronghold of unregulated betting platforms, even as legal options become increasingly accessible across the country.
Related: Bovada Continues to Shrink US Footprint as More States Apply PressureThe study assessed various metrics, including search trends, bettor engagement, and other online indicators, to estimate the size of the offshore market. While the survey does not provide an exact dollar-for-dollar comparison, it presents a compelling indication that unregulated betting activities could amount to nearly $300 billion annually.
This figure is substantial compared to the approximately $150 billion wagered through legal US sportsbooks in 2024. Such data reinforces concerns over the difficulty of integrating bettors into the regulated system and reducing reliance on offshore platforms.
The analysis highlights that five of the 10 most recognized sportsbook brands in the US operate outside of regulated frameworks. A significant factor contributing to the dominance of offshore books is the continued prohibition of sports betting in large states such as California and Texas. With a combined population exceeding 65 million, these two states lack legal sports betting markets, creating a significant demand for offshore alternatives.
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Bettors Balk at Regulated Markets
Even in states where betting is legally available, unregulated sportsbooks remain influential. Florida, the most populous state with legal betting, presents an example of this trend. The study found that offshore books account for roughly 80% of the betting market in the state. Hard Rock, the only legal sportsbook operating in Florida, has less online traction compared to Bovada, which the study identifies as the most valuable sportsbook in both Florida and the nation.
The study also found that in major competitive sports betting states such as New York, Ohio, Massachusetts, and Illinois, at least one offshore sportsbook ranks among the top five most popular brands. This demonstrates that unregulated operators retain significant consumer interest, even in jurisdictions with multiple legal options. However, the study observed that in the four states offering fully competitive online casino gaming—New Jersey, Pennsylvania, Michigan, and West Virginia—offshore brands did not rank among the top five most recognized betting platforms.
Efforts to curb the influence of offshore sportsbooks have included regulatory crackdowns and cease-and-desist actions from state agencies. Currently, 31 states, Washington, D.C., and Puerto Rico have legalized online sports betting, covering approximately half of the US population. While regulators and industry advocates have pushed legalization as a means to attract bettors to the regulated market, the study underscores that unlicensed operators continue to hold a firm grip on consumer participation.
Several state regulators have attempted to restrict offshore betting access by issuing enforcement actions against unauthorized operators. Bovada has stopped accepting wagers in more than six states, including New York, which has the highest legal sports betting handle in the country. Despite withdrawing from certain markets, it remains a dominant presence in states such as Ohio, where it continues to attract significant interest from bettors.
Federal intervention in curbing offshore gambling has remained limited. Legal sports betting advocates argue that federal enforcement is necessary to combat illegal betting platforms that operate from overseas jurisdictions. That might be made easier if the SAFE Bet Act is approved.
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