AGA: Illegal gambling accounts for a third of the US market
Illegal gambling costs states $15 billion in lost tax revenue. A new analysis by the American Gaming Association (AGA) reveals that US gamblers wager approximately $673.6 billion annually on the illicit market. This mark affects the turnover of licensed operators and leads to an outflow of funds from social infrastructure.
The study, which includes a survey of 2,454 American adults, was conducted by The Innovation Group on behalf of the AGA. The questions pertained to their gambling behaviour over the past year. In addition, researchers monitored unregulated slot machines. The report also includes publicly available data on the legal gambling market in the US and slot machine markets in individual states.
The illegal market has grown by 22% over three years
Since the last AGA report in 2022, the illegal gambling market in the US has grown by 22%. It includes online casinos, slot machines, and bookmakers. At the same time, the growth of the legal market exceeds the development of the illegal market in terms of total gambling revenue in the US. Accounting for a smaller share of revenue, illegal operators make up almost a third (31.9%) of the country’s entire gambling market.
The illegal and unregulated gambling market brings offshore operators about $53.9 billion annually, depriving states of $15.3 billion in taxes.
Commenting on the spread of illegal gambling, AGA President and CEO Bill Miller expressed his outrage. He said: “It is time for national action to combat the illegal market that is draining state coffers and putting people at risk.”
The share of legal casino players fell to 24%
Online slots and casino table games generated approximately $18.6 billion in revenue for illegal operators, representing a 38% increase from 2022. The rise was because over three years, the share of users of exclusively legal sites fell from 52% to 24%.
At the same time, the share of players using both legal and illegal sites increased to 49%, representing an almost threefold rise. Despite this growth, illegal operators account for a smaller share of the total US gambling market than they did three years ago.
Unregulated slot machines as the main threat
The number of unregulated slot machines in the country has grown by 7.7% since 2022 and now stands at 625,000. They generated $30.3 billion in revenue, and costs totalled $9.5 billion in lost tax revenue. The rapid spread of such machines in public places is the main threat to the country’s legal gambling business, according to the AGA.
Only legal bookmakers retain their dominance
According to the report, in 2024, Americans bet about $84 billion with illegal bookmakers. The winnings amounted to $5 billion, and tax losses totalled $1 billion. Over the past three years, the share of illicit bookmakers’ customers has decreased by a third. Accordingly, the share of illegal bookmakers in the total sports betting market in the US decreased from 36 per cent to 24 per cent. According to statistics, one in ten American gamblers bets exclusively on illegal sites.
As a national trade group, the AGA promotes legal casinos by advocating for a favourable political and business environment. The association brings together commercial and tribal casinos, bookmakers, online operators, and equipment suppliers. These participants form an industry worth $329 billion and create approximately 1.8 million jobs nationwide. Legal US casinos are available on the AGA State of Play Map.
The problem with illegal operators is more acute in Europe
While in the US the illegal market accounts for a third of total turnover, in Europe it exceeds half. In a recent interview with SiGMA News, Maarten Heijers, Secretary General of the European Gaming and Betting Association (EGBA), expressed grave concern about the growing black market activity in Europe and stressed the need for smarter, more effective regulation and coordinated enforcement measures.
Despite steps towards creating regulated online gambling markets in the EU, the European system remains fragmented, allowing illegal operators to exploit regulatory inconsistencies and put consumers at risk. In an interview with SiGMA, Maarten Heijers pointed out the seriousness of the problem and the limitations of the current regulatory environment.
“More than 50% of the market is effectively in a completely unregulated black market zone,” said Hijer, citing recent data from the Netherlands. “We are seeing a growing problem with illegal operators and a lack of proper oversight.”
This article was first published in Russian on 14 August 2025.
