According to the latest report released by the data intelligence platform Yield Sec, commissioned by the Campaign for Fairer Gambling (CFG), illegal online gambling has fully penetrated the US market, causing billions of dollars in economic losses and posing a substantial threat to the legal gambling industry.
This report, titled "National US 2024," reveals that illegal gambling platforms currently control 74% of the US's $901 billion online gambling market.
In the past year, the revenue of legal operators has increased by 36%, while that of illegal operators has soared by 64%, nearly double that of the former, showing that the growth of illegal gambling far exceeds regulatory capabilities.
The report points out that illegal operators still far surpass compliant brands in terms of platform coverage, product supply, pricing flexibility, and market promotion.
Data shows that up to 88% of US internet users have encountered illegal gambling content on search engines, social media, streaming platforms, and mobile apps, making illegal traffic penetration a nationwide phenomenon.
Illegal market's revenue paths: Price, platform, and events drive together
Illegal platforms not only attract more users but also significantly outperform legal counterparts in terms of user stickiness and consumption depth. Their affiliate marketing network is six times the size of legal platforms, with very high activity levels, continuously driving traffic and conversions for illegal sites.
International sports events such as the Super Bowl, "March Madness," Copa America, and the upcoming Paris Olympics, serve as springboards for a surge in illegal gambling traffic. Illicit platforms leverage these events to guide users to place bets and cross-sell online casinos, election forecasts, financial contracts, and even tariff events, greatly enhancing their positioning as one-stop gambling centers.
The Yield Sec report also notes that these illegal sites often operate without geographical restrictions, offering various gambling products to users across the US, operating interstate without identity verification and age restrictions, posing serious security and ethical risks.
CFG: Legalization ≠ Solution, US gambling legislation should be thoroughly rethought
Derek Webb, founder of CFG, criticized the US's "legalize first, regulate later" policy approach as extremely dangerous. In California, where online gambling remains illegal, the per capita gambling loss in 2024 is $141. In states like New Jersey, where gambling is fully legalized, the combined per capita loss from illegal sports betting and casinos is as high as $272, nearly double that of California, showing that "legalization has not effectively replaced the illegal market."
"Those scholars, legislators, consultants, and lobbyists who claim that legalization can naturally squeeze out illegal gambling should be ashamed of the actual results," Webb stated bluntly.
Ismail Vali, CEO of Yield Sec, emphasizes that the responsibility of regulatory bodies is to oversee licensed enterprises, while illegal operators completely evade licensing and regulation. He stated: "Illegal gambling is a problem for the entire ecosystem. Operators, platform providers, law enforcement, advertising companies, and the government should all share governance responsibilities."
Yield Sec currently provides market monitoring tools for regulators and gambling enterprises in multiple states to identify illegal platforms and eliminate black market activities. Vali pointed out: "We provide data and solutions to help law-abiders eliminate black production—because what's being stolen is rightfully your revenue."
Key data summary (2024):
Number of illegal online gambling operators: 917 (only 95 legal operators)
Affiliates promoting illegal gambling: 668 (legal platforms have 106)
Illegal gambling content reach rate: 88% of US internet users
Annual illegal gambling total revenue: $67.1 billion
Annual legal gambling total revenue: $23 billion
Illegal gambling annual growth rate: 64%, far exceeding the legal gambling's 36%
Call to action: 2025 may be a turning point for regulation
Yield Sec warns that if swift action is not taken to curb the spread of illegal gambling, the US online gambling market will completely lose control by 2025. CFG calls on Congress, state legislatures, regulatory bodies, and mainstream platforms to act together to combat illegal operators, protect consumer rights, maintain national tax revenue, and fundamentally reshape the compliance ecology of the gambling industry.
