74% of Online Gambling in the U.S. Is Controlled by Unlicensed Operators
A new report by the Campaign for Fairer Gambling (CFG) and Yield Sec reveals a major imbalance in the U.S. online gambling market, which is valued at $90.1 billion.
The Structure of Online Gambling in the U.S.
Despite the presence of licensed operators, the majority of market revenue is driven by unregulated activity. This raises concerns about player safety and highlights the shortcomings of current regulatory frameworks.
| Metric | Licensed Operators | Unlicensed Operators | Total Market |
|---|---|---|---|
| Market Share | $23 billion | $67.1 billion | $90.1 billion |
| GGR Percentage | 26% | 74% | 100% |
Average Player Losses
The report analyzes how much U.S. residents lose to online gambling annually, based on the level of legalization in each state.
- National average per capita loss: $269 per year (0.62% of income)
- States without legal iGaming: $124 (0.31%), with 100% going to offshore operators
- States with legal sports betting only: $336 (0.77%), broken down as:
- $262 — illegal activity
- $75 — legal activity
- Fully regulated states (sports betting + iCasino): $496 (1.12%), including:
- $283 — licensed platforms
- $213 — unlicensed platforms
Loss Comparison by Legalization Status
The differences in losses across states are striking:
| State Type | Per Capita Loss | % of Income |
|---|---|---|
| No Legal iGaming | $124 | 0.31% |
| Sports Betting Only | $336 | 0.77% |
| Full Legalization | $496 | 1.12% |
Report Takeaways
CFG analysts emphasize the following key points:
- Unlicensed gambling remains widespread, even in fully regulated states
- Player losses in regulated states are four times higher than in states without legal online gambling
- Legalization has not displaced the gray market — both systems continue to operate in parallel
The authors call for stronger enforcement and an overhaul of regulatory strategies, as current measures fail to reduce the dominance of unlicensed operators.