A new study estimates that unlicensed online gambling generated $97.4 billion in gross gaming revenue from US consumers during 2025, accounting for 77% of the country’s online gambling market.
Gaming Compliance International (GCI) produced the analysis for the Campaign for Fairer Gambling (CFG). The report puts total US online gambling revenue at $125.6 billion for 2025, compared with $90.1 billion in 2024. The illegal segment rose from $67.1 billion to $97.4 billion, a 45.2% increase, while the regulated market grew from $23 billion to $28.3 billion.
Derek Webb, who funds the CFG and previously campaigned for restrictions on high-stakes betting terminals in Britain, argued that enforcement should receive greater attention. “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-Level Gambling Losses
GCI’s analysis uses a measure called the loss ratio, which compares gambling revenue with population and income levels. States allowing both online sports betting and online casino gaming recorded an average ratio of 1.38% in 2025. States without either form of legal online gambling recorded 0.44%.
Louisiana recorded the highest overall ratio at 1.44% for gambling losses relative to income, according to the report. California, which has no legal online gambling, recorded a 0.43% ratio, entirely attributed to unregulated activity.
West Virginia had a total loss ratio of 1.57%, with 0.87 percentage points attributed to illegal operators.
The CFG said the figures support a pause in further market expansion until authorities strengthen measures against unlicensed operators. The group also acknowledged that it commissioned and funded the research.
Disagreement Over The Size Of The Illegal Market
GCI’s estimate differs sharply from research commissioned by the American Gaming Association in 2025. That study estimated the entire US illegal gambling sector at $53.9 billion, including $18.6 billion in illegal iGaming and $5 billion in illegal sports betting.
The different totals reflect different research methods. GCI monitors online gambling destinations and estimates activity using its value-per-visit methodology, while the AGA study relied on consumer responses and data on unregulated gaming machines.
GCI’s figures have faced scrutiny previously. Its earlier estimate of $81.4 billion for global crypto-gambling revenue was challenged by blockchain analytics firm Tanzanite, which estimated the market at closer to $10 billion.
Webb defended GCI’s methodology, saying he had reviewed detailed work that gave him no reason to doubt the company’s findings.
The debate also extends to prediction markets, which GCI includes within its sports betting calculations. The classification has become a legal issue in the US, with states and federal authorities contesting whether prediction contracts fall under gambling or financial regulation.
Webb said the broader challenge extends beyond licensing. “The black market in the US is so well established it doesn’t matter how much you legalize,” he said. “There has to be some enforcement methodology to deal with it.”
Source:
“’Crime Laughing At All Of Us’—US Illegal Gambling Put At $97 Billion”, forbes.com, August 10, 2026
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