Offshore operators dominate US online gambling revenue, new report finds

A recent national report has claimed that offshore and unregulated operators now control a staggering 74% of all gross gambling revenue (GGR) generated online in the United States.

According to the Campaign for Fairer Gambling (CFG), which commissioned the analysis from market intelligence firm Yield Sec, the total US online gambling GGR reached $90.1bn (~£66.5bn) in 2024.

Of this, only $23bn (26%) was captured by legal, regulated platforms, while a massive $67.1bn flowed to offshore, illegal operators.

Yield Sec’s research examined all 50 states and found that the illegal market is not only thriving but growing faster than its legal counterpart.

In 2024, revenue from unregulated online gambling surged by 64% compared to the previous year, while legal platforms saw a 26% increase.

The report highlights that there are nearly 10 times as many illicit gambling platforms (917) as there are legal ones (95), and affiliates promoting offshore operators outnumber those supporting legal sites by a factor of six.

States with fully regulated online gambling, such as New Jersey, Pennsylvania, and Michigan, have managed to capture a greater share of the total market.

In these states, legal operators account for about 57-58% of GGR, with Pennsylvania’s legal sector generating $3.58bn (~£2.64bn) and New Jersey’s $3.55bn (~£2.62bn) in 2024.

However, in states where online gambling remains illegal or only partially regulated, such as California, Texas, and Ohio, offshore platforms dominate.

For example, California’s entire $5.49bn (~£4.05bn) online gambling market is attributed to illegal operators. Meanwhile, in New York, 72% of the $5.3bn (~£3.91bn) total GGR comes from unregulated sources.

The report attributes the dominance of offshore operators to factors such as convenience, broader product offerings, better promotions, and fewer regulatory barriers. Many US consumers may not even realize they are using illegal sites, as these platforms often offer all forms of gambling and more attractive incentives than their legal counterparts.

Despite the expansion of legal online gambling since the Supreme Court overturned PASPA in 2018, the offshore market continues to flourish.

The CFG report calls attention to the need for more effective enforcement and public awareness, as the current regulatory framework has not been sufficient to curb the influence of illegal gambling operators in the US market.