Summary
- The American Gaming Association has unveiled a compelling report shining a light on the underground world of illegal online gaming, sports betting, and skill games across the United States.
- Since 2022, the clandestine world of gambling has surged, now claiming responsibility for nearly a third of the entire U.S. gaming market.
- Bill Miller, the President and CEO of AGA, passionately called for a nationwide crackdown on illegal gambling.
The American Gaming Association, which stands as the national voice for the US casino industry, has unveiled an eye-opening analysis shedding light on the growing shadow of illegal gambling in the United States. According to a recent study by The Innovation Group, this underground market has surged dramatically, expanding by a double-digit percentage in recent years, sparking concern and prompting calls for action.
Illegal gambling is on the rise across the U.S.
A recent survey of 2,454 adults from across the United States has shed light on some concerning trends in both legal and illegal gambling. Alarmingly, Americans are wagering a staggering $673.6 billion annually with illegal operators. This includes underground betting firms, unauthorized online gambling, and unregulated skill machines. This unchecked flow of money deprives our communities and states of crucial funds needed for public safety, education, infrastructure, and other vital community projects. According to the newly released report by the American Gaming Association (AGA), illegal gambling operators are reaping $53.9 billion a year. This staggering figure results in an estimated loss of $15.3 billion in taxes that could have benefitted communities nationwide. The AGA also highlights a troubling 22% spike in the illegal gambling market since their last report in 2022. This surge is fueled by the rapid expansion of unlawful online gaming, the unrelenting presence of illicit sports betting, and the growing use of unregulated skill machines. Legal gaming has grown, helping to curb the illegal market's share of total U.S. gaming revenue. Yet, illegal operators still command nearly one-third of the total market, or 31.9%, according to the Association. This reality underscores the ongoing challenge and urgency to address the spread of unlawful gambling.
Black market bookies, iGaming firms and skill games generate billions in annual revenue
Illegal sports betting dominates a large slice of the shadowy gambling world. According to the American Gaming Association (AGA), Americans have wagered a staggering $84 billion with illegal or offshore betting companies in just the past year. These unregulated operators have pocketed $5 billion in revenue, leaving a gaping $1 billion hole in potential tax income. Adding to this growing concern is the rise of skill-based gaming. The report highlights an unsettling presence of approximately 625,000 skill machines scattered throughout the nation. This specific form of illegal gambling has surged 7.7% since 2022, raking in $30.3 billion and costing taxpayers $9.5 billion in lost revenue. Illegal online gaming, or iGaming, has seen explosive growth since 2022 as well. Revenue from unauthorized table games and slot machines has skyrocketed by nearly 38%, reaching $18.6 billion annually. Even more troubling is the shift in where people are playing. The number of iGamers sticking to legal sites has plummeted from 52% in 2022 to a mere 24% today. Meanwhile, those dabbling in both legal and illegal platforms have soared to 49%, nearly tripling in just three years. Bill Miller, the AGA's President and CEO, has issued a stark warning: Illegal gambling operators are thriving at the cost of American consumers and state governments. They drain billions in tax revenue, undermining the efforts of the legal market. Miller passionately argues for a decisive national crackdown on this ever-expanding illegal market, which not only drains state funds but also jeopardizes consumer safety. In his words, these operators evade taxes, fail to contribute to economic growth, disregard responsible gambling practices, and offer no consumer protections, all while lurking in the shadows.
