Illegal Gambling Surges to $673.6 Billion, AGA Reports Urgently
URGENT UPDATE: New data from the American Gaming Association (AGA) reveals that illegal gambling in the U.S. has skyrocketed to an astonishing $673.6 billion annually, with nearly one-third of all bets placed through illegal operators. This alarming trend persists despite the rapid expansion of the legal gaming market.
The AGA’s findings, based on a recent analysis from The Innovation Group, highlight a 22% growth in illegal gambling since 2022. This illegal market, which includes unregulated online gaming, grey market skill machines, and illegal sports betting, now accounts for 31.9% of the total U.S. gaming landscape. The AGA emphasizes that this shift diverts crucial revenue from licensed operators, ultimately denying communities vital resources for education, infrastructure, and public safety.
“Combating illegal gambling requires stronger U.S. enforcement and collaboration with international partners,” said Bill Miller, AGA president and CEO. He stressed the dangers posed by these operators who operate in secrecy, offering no consumer protections or responsible gaming measures.
In detail, the report indicates that the illegal market generates approximately $53.9 billion in revenue, leading to a staggering potential tax loss of $15.3 billion if these bets were made legally. The rise of illegal gambling is particularly concerning given the growing presence of over 625,000 unregulated gaming machines across bars and restaurants, which alone generate around $30.3 billion annually, costing states about $9.5 billion in lost taxes.
The illegal iGaming sector alone has reached $18.6 billion in revenue, marking a significant 38% increase since 2022. Alarmingly, the share of online gamblers using legal sites has plummeted from 52% in 2022 to just 24% today. However, there is a slight decrease in the percentage of bettors exclusively using offshore sites, now at 10%, suggesting some progress in consumer awareness.
The AGA’s urgent call to action comes amid a broader discussion about the controversial sweepstakes sector, which many Americans still perceive as gambling, despite claims to the contrary from operators. The AGA notes that about 90% of U.S. players view sweepstakes in the same light as traditional gambling.
As this critical issue continues to unfold, lawmakers are urged to take immediate action to protect consumers and ensure that gambling revenues benefit local communities. The AGA’s recommendations highlight the importance of enforcing regulations and closing down illegal operations that exploit vulnerable players.
Stay tuned for more updates on this developing story as authorities strive to combat the persistent illegal gambling crisis gripping the nation.
