Urgent Study Reveals 74% of US Online Gambling Is Illegal
UPDATE: A shocking new analysis reveals that approximately 74% of the US online gambling market is illegal, encompassing activities from online casinos to sports betting and cryptocurrency operations. This urgent report by Yield Sec highlights a hidden crisis in the US iGaming landscape, backed by The Campaign for Fairer Gambling.
According to Yield Sec founder Ismail Vali, the dominance of illegal gambling channels is alarming. Vali asserts that even in regulated markets, illegal activities persist at staggering levels. “Just because you have regulated a market does not mean crime will automatically disappear,” he cautions, estimating that 70% of gambling activity still flows through illegal channels.
The report starkly illustrates the scale of the problem across individual states. For instance, California and Texas, which lack regulated gambling markets, contribute a combined $10 billion to the illegal gambling market—specifically, $5.5 billion from California and $4.5 billion from Texas. Meanwhile, in Ohio, a state with some regulation, only 15% of its $6.2 billion gambling market is legal, with around 917 local operators detected.
The rise of cryptocurrency poses another significant challenge for regulators. Yield Sec has identified tens of thousands of crypto casinos worldwide, many exploiting regulatory loopholes to operate outside the law. Vali emphasizes that addressing this issue is critical to ensuring fair and safe gambling practices.
Yield Sec’s methodology, originally developed for counter-terrorism efforts, has been adapted to accurately track illegal gambling volumes, especially during major events like the Super Bowl and March Madness. However, questions arise about the accuracy of these claims, as mainstream research firms report significantly lower figures.
Authorities and lawmakers must confront the stark realities presented by this report. The potential for illegal gambling to impact communities and public safety is profound. As the landscape evolves, the need for comprehensive regulation and oversight becomes more pressing than ever.
This developing story underscores the urgent need for reform and awareness surrounding illegal online gambling. Stakeholders across the industry must act swiftly to address these alarming findings and protect consumers from the dangers associated with unregulated gambling activities. Stay tuned for further updates as this situation unfolds.
