Fully regulated states see offshore market share drop to 38 per cent
Legalisation in the United States does not eliminate offshore gambling activity but dramatically
reduces it. According to Blask’s 2025 US iGaming landscape analysis, fully regulated states
offering both online casino and sports betting see offshore market share drop to approximately
38 per cent on average.
By contrast, betting-only states average around 74 per cent offshore share, while unregulated states send 100 per cent of their online gambling value offshore by definition. The data suggests a clear structural pattern: regulation significantly improves channelisation — but it is not a binary switch.
Across all analysed US states, the national average offshore share stands at 79 per cent, compared to 21 per cent domestic. Even after more than a decade of state-level legalisation, offshore platforms still capture the majority of US online gambling value. However, the distribution varies dramatically depending on the regulatory model.
States that have legalized both online casino and sports betting show the strongest domestic capture rates. New Jersey captures approximately 73 per cent of its market domestically. Michigan captures roughly 75 per cent domestically. Across fully regulated states, domestic share averages near 62 per cent.
These markets demonstrate that when players have access to a full licensed product suite, inlcuding casino, a majority of value can be retained within the regulated ecosystem. The picture changes sharply in states that have legalised sports betting but not online casinos. In these jurisdictions, offshore share averages around 74 per cent. Examples illustrate the structural limitation.
New York, the largest state market by CEB, sees roughly 61 per cent of its value flow offshore. Ohio shows an even more extreme split, with 82 per cent of market value offshore.
In both cases, the absence of regulated online casinos pushes players seeking slots and table games toward unlicensed platforms. The data indicates that sports betting alone does not meaningfully channelize broader gambling demand.
Even within fully regulated states, maturity plays a role. Rhode Island, one of the newest regulated markets, remains below the tipping point, with offshore share exceeding domestic. This suggests that channelization improves over time as licensed brands build product depth, customer trust, and brand equity.
A spokesperson for Blask said: “The U.S. model demonstrates that legalization reduces offshore participation substantially therefore cutting it by more than half in fully regulated environments compared to national averages. However, no U.S. state has fully eliminated offshore activity. For policymakers, the takeaway is pragmatic rather than ideological: full-spectrum regulation meaningfully shifts economic value onshore, but expectations of total elimination are unrealistic. The debate is therefore no longer whether offshore exists, but how much of it can be practically reduced through comprehensive regulation.”
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Fully regulated states see offshore market share drop to 38 per cent Legalisation in the United States does not eliminate offshore gambling activity but dramaticallyreduces it. According to Blask’s 2025 US iGaming landscape analysis, fully regulated statesoffering both online casino and sports betting see offshore market share drop to approximately38 per cent on average. By…
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