A recent analysis of North America’s online gambling landscape reveals that unlicensed platforms continue to capture the majority of market activity, even as domestic regulation expands. In 2025, the US online gambling market reached an estimated $79.8 billion in competitive earnings baseline (CEB), making it seven times larger than the UK, while Canada added another $9.5 billion. Despite this growth, the report highlights that offshore operators still control roughly two-thirds of US market volume.
According to the Blask report US and Canada iGaming 2025: The offshore reality, “80 percent of all brands serving US players are offshore,” underscoring the dominance of unregulated platforms. Bovada, an offshore operator, leads the market with estimated earnings surpassing those of any other country outside the US, UK, and Canada. Domestic leaders such as FanDuel and DraftKings continue to grow, but their progress has not yet significantly reduced the black market’s influence.
Full Regulation Reduces Offshore Share
The report notes that states offering both online casino and sports betting demonstrate the effectiveness of comprehensive regulation. In these jurisdictions, licensed operators average 62 percent of total market share. Michigan exemplifies successful channelization with a 75 percent domestic share, while New Jersey’s domestic brands control 73 percent of their market twelve years after the first legal casino launch.
“Full-spectrum regulation works but takes time to yield results,” the report states, highlighting that a complete product suite is crucial for retaining players on licensed platforms. States with sports betting only, however, remain heavily reliant on offshore platforms, which capture an average of 74 percent of market volume. New York, the largest US market by CEB, sees roughly 60 percent of its online gambling activity directed to unlicensed operators due to the absence of regulated online casinos.
Untapped Opportunities in California and Texas
Blask emphasizes the potential of California and Texas, where nearly $10 billion in CEB currently flows entirely offshore. California’s regulatory path is complicated by tribal gaming dominance and unresolved mobile wagering issues, while Texas has historically avoided online gambling legalization and does not convene its legislature in even-numbered years. Until these states move toward regulation, billions in potential tax revenue and consumer protections remain outside domestic control.
Emerging Prediction Markets and Online Poker
The report identifies prediction markets as a rapidly growing segment, with a Blask Index increase of 256 percent in 2025. Platforms such as Polymarket and Kalshi have expanded beyond political events into sports markets, providing real-time indicators of collective sentiment. Online poker remains a stable duopoly, with Americas Cardroom and PokerStars accounting for approximately half of total demand in the US
Regulation as a Gradual Process
Blask underscores that legalization alone does not eliminate offshore activity. Across the US, the average offshore share stands at 79 percent. Fully regulated states see a reduction of more than half compared to national averages, yet no state has entirely removed unlicensed operators. The data suggests that regulation is a spectrum rather than a binary solution, with sustained domestic growth dependent on time, comprehensive offerings, and consumer trust.
Source:
“USA and Canada iGaming landscape 2025: the offshore reality”, blask.com, March 11, 2026
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