The American Gaming Association has said $673.6bn (£496bn) is wagered annually with illegal operators, with CEO Bill Miller demanding a “national crackdown” against the black market.
Estimated revenue derived from the black market stands at $53.9bn, with $15.3bn in potential state tax income being lost due to illegal operators.
Conducted in partnership with The Innovation Group, the AGA’s research split the illegal sector into three sections: sports betting (including bookies and offshore), online slots and table games, and unregulated machines in bars and taverns.
Sports betting stakes were reported to be $84bn, with revenue of $5bn and tax losses of $1bn. The online casino handle forecast was $466.2bn, with revenue of $18.6bn and lost taxes of $4.8bn.
The data noted that since the last report in 2022, the US illegal market has grown 22% and accounts for 31.9% of the total US gaming market.
Illegal igaming revenue is up roughly 38% since 2022, with players only using legal sites dropping from 52% three years ago to 24% in 2025.
Those that use both legal and illegal sites hit 49%, with the rate almost tripling in three years. However, illegal operators hold a smaller share of the total US igaming market than they did in 2022.
When compared to the AGA’s 2022 report, the amount of sports bettors gambling exclusively with illegal sites fell by a third.
Illegal sportsbooks’ share of the US sports betting market dropped from 36% to 24%, with one in 10 still using illegal sources exclusively.
Per the 2022 report, the legal sports market was approximately $6.8bn in annual revenue compared to the illegal market of roughly $3.8bn.
In 2025, the figures now stand at $16bn in the legal market and $5bn for the illegal market.
On the latest figures, Miller said: “Illegal gambling operators are thriving at the expense of American consumers, siphoning billions in tax revenue from state governments and undercutting the efforts of the legal market.
“It’s time for a national crackdown on the pervasive illegal market that is draining state coffers and putting people at risk.
“There, bad actors operate in the shadows with zero consumer protections, no responsible gaming obligations, and no economic return to the communities they exploit.
“Combating them requires not only stronger US enforcement but also continuing to work closely with our international partners to shut down offshore operators and hold them accountable.”
Last week, attorneys general from 46 US states and four territories called on the US Department of Justice to combat the rise of illegal gambling.
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CEO Bill Miller says unlicensed firms are “siphoning billions” from the government as well as putting players at risk, as he calls for a “national crackdown” against bad actors
The post AGA: Illegal operators account for almost one third of legal US gaming market first appeared on EGR Intel.