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Illegal online gambling in America

7 December 2022

The American Gaming Association released data on illegal online gambling in this country. Even with the expansion of online gambling across the U.S., Americans are still betting at these offshore illegal online gambling websites. So much so, that the American Gaming Association estimates over $330 billion a year is going offshore to these online casinos, online poker, and online slots sites, costing billions in tax revenue.

Of course, it's not just the illegal online gambling that's costing the states so much money. There are also unregulated gaming machines and even the neighborhood sports betting bookies. According to estimates, this activity costs the legal gaming industry $44.2 billion in annual revenue, or nearly half of the $92 billion in combined commercial and tribal revenue in 2021.

“Illegal online gambling and unregulated gambling is a scourge on our society, taking advantage of vulnerable consumers, skirting regulatory obligations and robbing communities of critical tax revenue for infrastructure, education and more,” said American Gaming Association President and CEO Bill Miller.

Illegal online gambling accounts for an estimated $337.9 billion with illegal gambling websites, with a loss of $3.9 billion in state tax revenue. With $13.5 billion in estimated revenue, the illegal iGaming market in the U.S. is nearly three times the size of the legal U.S. iGaming market, estimated to be $5 billion in 2022. With iGaming only legal in six states, nearly half of all Americans that have played online slots or table games in the past year have played with illegal online gambling, whether online casinos, online poker, or online slots.