Illegal US Online Gambling Hits $97.4 Billion GGR in 2025 With 45% Growth
SCCG Take — Enforcement against illicit operators must precede further expansion. Regulators and licensed operators cannot rely on market legalization to resolve persistent unregulated demand.
Illegal online gambling operators in the US generated $97.4 billion in gross gaming revenue in 2025. This reflects a 45.2% increase from $67.1 billion in 2024 and outpaces regulated sector growth, according to a report produced by Gaming Compliance International and commissioned by the Campaign for Fairer Gambling, as reported by Yogonet International.
The regulated online market rose 23% to $28.3 billion from $23 billion. Total online gambling losses across both sectors climbed from $90.1 billion to $125.6 billion, a 39.4% rise. Unlicensed sites now represent 77% of the overall market by GGR, up from 74%.
The report states that legalizing online sports betting and casino gaming has not curtailed illegal operators. Legalization has instead expanded the entire gambling market while unregulated activity continued its advance. The legal sector uses the presence of the illicit sector to demand legalisation, then asks for low tax and regulation to compete against the illicit sector. Taking action against bad actors in the illicit sector is the solution and must be the priority for all stakeholders.
State Loss Ratios Show Unregulated Demand Persists
The analysis applies a Loss Ratio comparing gambling GGR per capita to income per capita. States offering both legal online sports betting and casino gaming averaged 1.38%. Sports-betting-only states averaged 0.99%, while jurisdictions with neither averaged 0.44%. Significant unregulated activity appears under every model.
Louisiana posted the highest overall and unregulated ratios. West Virginia recorded a total Loss Ratio of 1.57%, including 0.87 percentage points from unlicensed operators. California, lacking both regulated products, showed a 0.43% Loss Ratio attributed entirely to unregulated gambling. These patterns confirm that regulated supply alone does not displace illegal demand.
Enforcement Priorities for Regulators and Operators
The data highlight enforcement gaps that further legalization will not close. Stakeholders face competitive distortion and consumer protection shortfalls when unlicensed platforms hold dominant share. Targeted action against illegal operators, rather than repeated calls for lighter regulated terms, offers a clearer path to market order and reduced harm.
Reporting: Yogonet International
Generated by SCCG’s automated editorial system from published source reporting. SCCG Management holds editorial responsibility.
Legalization alone doesn't stop illegal operators; enforcement must come first or we're just feeding a bigger unregulated monster.
We've been saying this for years: you can't license your way out of a black market. The illicit side grew faster than the regulated sector, now commanding three-quarters of all online GGR. Until enforcement becomes the priority, licensed operators are competing with one hand tied and consumers remain unprotected.
- Illegal online GGR jumped 45% to $97.4B, regulated up just 23% to $28.3B
- Unlicensed operators now hold 77% market share by GGR, up from 74%
- Even legalized states show persistent unregulated demand; Louisiana and West Virginia lead losses
SCCG angle: SCCG works with regulators, compliance vendors, and operators across every US jurisdiction to design targeted enforcement strategies and responsible market frameworks. We connect clients to geolocation, payment monitoring, and data analytics partners who can identify and disrupt illicit operators before they entrench further.
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