Study Reveals 74% of US Online Gambling Market Operates Illegally

New data from Yield Sec’s analysis of the US iGaming landscape suggests that about 74% of all gambling activities, whether it’s online casinos, sports betting, or crypto, may be conducted illegally. The insights are backed by The Campaign for Fairer Gambling, highlighting illegal channels as predominant players in the U.S. market. The founder of Yield Sec, Ismail Vali, emphasizes that despite regulatory efforts, the prevalence of illegal gambling remains a significant issue, particularly when cryptocurrencies are involved. Vali estimates that 70% of gambling activity continues to operate through these unlawful avenues, even with state-level regulations in place.

Taking a closer look at specific states, the scale of the issue becomes clear. For instance, both California and Texas lack regulated gambling markets altogether, contributing a staggering $5.5 billion and $4.5 billion respectively to the illegal gambling market in the U.S. Even in states with regulated markets like Ohio, the problem persists. In Ohio, only 15% of the $6.2 billion market is considered legal, with a multitude of 917 operators detected locally. Yield Sec asserts that merely regulating the market doesn’t eradicate illegal gambling, as they have identified thousands of crypto casinos worldwide that exploit various regulatory loopholes to

Taking a closer look at specific states, the scale of the issue becomes clear. For instance, both California and Texas lack regulated gambling markets altogether, contributing a staggering $5.5 billion and $4.5 billion respectively to the illegal gambling market in the U.S. Even in states with regulated markets like Ohio, the problem persists. In Ohio, only 15% of the $6.2 billion market is considered legal, with a multitude of 917 operators detected locally. Yield Sec asserts that merely regulating the market doesn’t eradicate illegal gambling, as they have identified thousands of crypto casinos worldwide that exploit various regulatory loopholes to continue their operations undeterred.

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The methodology employed by Yield Sec to track unregulated and illegal gambling volumes is notably sophisticated, having evolved from systems originally designed to counteract terrorist threats. This advanced tracking allows Vali and his team to monitor gambling activities with high precision, even during major events like the Super Bowl and March Madness. Notwithstanding their detailed and seemingly somber findings, a glaring question remains: why do mainstream and specialist research firms struggle to replicate these figures? This inconsistency poses a significant challenge to understanding the full scope of illegal gambling.

For those invested in the online gambling industry—both veterans and newcomers