US Unregulated iGaming Market Approaches $100bn Mark as Unlicensed Operators Outpace Regulated Growth
The dramatic expansion of unregulated gaming comes despite 39 states having legalised online sports wagering and seven states offering regulated iGaming.
The revenue generated by unlicensed online gambling platforms in the United States approached $100bn in 2025, significantly outstripping the growth rate of the country’s legal iGaming sector.
According to research published by Gaming Compliance International (GCI) in partnership with intelligence group Yield Sec, total net revenues for illegal and offshore gambling operators targeting US consumers rose to $97.4bn (£76.4bn) in 2025—a 45.2 per cent surge compared to the $67.1bn recorded in 2024.
By contrast, the legally regulated US online gambling market generated $28.3bn (£22.2bn) in 2025, representing a 23 per cent year-on-year increase. The findings highlight a widening gap between regulated channels and offshore platforms, with unlicensed operators taking an estimated 77 per cent share of total digital gambling revenues nationwide.
Unlicensed Sector Outpaces State Expansion
The dramatic expansion of unregulated gaming comes despite 39 states having legalised online sports wagering and seven states offering regulated iGaming. Analysts attribute the offshore sector's momentum to several structural advantages, including broader product availability, aggressive mass-market recruitment during major sporting events, and the cross-selling of unregulated prediction markets and crypto-linked casino games.
Derek Webb, founder of the Campaign for Fairer Gambling (CFG)—which commissioned parts of the study—warned that state-level legalisation alone has failed to curb illegal gambling networks:
Proponents for the legalisation of all forms of online gambling continue to assert that legalisation alone will convert the marketplace in favour of legal, licensed brands. America has been possessed by illegal gambling for more than three decades, and it is clear that crime and illegal gambling have not been reduced or removed by legalisation. The market promise has not materialised for legal, licensed online betting and gaming brands in America.
Key Market Comparisons
- Unregulated Revenue (2025): $97.4bn (+45.2% YoY)
- Regulated Revenue (2025): $28.3bn (+23.0% YoY)
- Total Digital Market Size: $125.7bn (+39.4% YoY)
- Unlicensed Market Share: 77.5% of total US online gambling revenue
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