Illegal Gambling in the US Drains $10 Billion from New York, New Jersey, and Minnesota
Despite stringent regulations, illegal gambling remains a pervasive issue across the United States. Although legal betting is available in nearly 48 states, unlicensed operators continue to attract bettors with competitive promotions and bonuses.
Significant Financial Impact
A report commissioned by the Campaign for Fairer Gambling (CFG) and conducted by Yield Sec (YS) highlights the economic impact of illegal gambling.
The analysis reveals that illegal online gambling in New York, New Jersey, and Minnesota alone generates nearly $10 billion.
This figure represents a substantial portion of the total illegal gross gaming revenue in the US, estimated at approximately $40.92 billion.
Detailed State-by-State Insights
•New York: Despite offering only online sports betting, a significant portion of the state’s iGaming market remains illicit. Approximately 49% of the market, equating to $3.4 billion, is operated by unlicensed entities. Additionally, 27% of online betting, worth $1.9 billion, also occurs through illegal channels.
•New Jersey: In a state with both legal iGaming and online betting, illegal activities still thrive. Unlicensed operators capture 22% of the iGaming market, around $996 million, and 16% of online sports betting, approximately $719 million.
•Minnesota: Without legal online gambling or sports betting, Minnesota sees 62% of its gambling activities, totaling $1.5 billion, managed by illegal operators. This includes $929 million in illegal sports wagers.
Derek Webb, founder of CFG, reiterated the dominance of illegal operators, stating “The dominance of illegal online gambling operators remains unchallenged despite the expansion of legal gambling.“
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