Illegal US online gambling revenue reaches $97.4bn in 2025, report says

Illegal online gambling operators in the US increased revenue faster than the regulated market in 2025, according to a Gaming Compliance International (GCI) report commissioned by the Campaign for Fairer Gambling (CFG). For PSPs, the point is straightforward: legalisation has not, by itself, pulled volume out of the unlicensed side of the market.

1. GCI says illegal online gambling revenue in the US rose 45.2 per cent in 2025 to $97.4bn. Regulated online gambling revenue also grew, but more slowly, rising 23 per cent to $28.3bn.
2. Combined online gambling losses across regulated and unregulated markets increased from $90.1bn in 2024 to $125.6bn in 2025, a 39.4 per cent increase. GCI estimates that unlicensed sites and apps accounted for 77 per cent of total US online gambling GGR, up from 74 per cent the previous year.
3. The report says the expansion of legal online sports betting and casino gaming has not reduced illegal activity. Instead, it says, the overall market has grown while unregulated operators have kept expanding alongside it.
4. Derek Webb, who funds the CFG, said: “The legal sector uses the presence of the illicit sector to demand legalisation, then asks for low tax and regulation to compete against the illicit sector.” He added: “Taking action against bad actors in the illicit sector is the solution and must be the priority for all stakeholders.”
5. GCI also compared state markets using a loss ratio, defined as online gambling GGR per capita against income per capita. States with both regulated online sports betting and casino gaming recorded an average ratio of 1.38 per cent in 2025, compared with 0.99 per cent in states with sports betting only and 0.44 per cent where neither product is regulated.

Among the state comparisons, Louisiana recorded the highest ratio of gambling spending to income and the highest unregulated proportion, with most of that activity attributed to illegal operators. West Virginia, where both products are legal, had a total Loss Ratio of 1.57 per cent, including 0.87 percentage points attributed to unregulated activity. California, where neither online sports betting nor casino gaming is legal, recorded a 0.43 per cent Loss Ratio, entirely attributed to unregulated activity.