New Analysis Shows Majority of Online Gambling Operators Targeting U.S. Players are Unlicensed

According to Blask’s latest analysis of the U.S. iGaming landscape, 290 out of 362 operators active in the American online gambling ecosystem (approximately 80%) are offshore platforms operating outside domestic regulatory frameworks. The data highlights a structural reality of the U.S. market: while regulation has expanded significantly over the past decade, offshore operators still dominate the competitive landscape in terms of brand presence.

This dominance is not limited to the number of operators. It also translates into a substantial share of total market value. Blask estimates that the total U.S. online gambling market reached approximately $79.8B in Competitive Earning Baseline (CEB) in 2025. Of that total, only around $25.2B was captured by licensed domestic operators, while the majority flowed to offshore platforms.

In other words, roughly three quarters of the U.S. market value remains outside the regulated ecosystem, despite more than a decade of state-by-state legalization.

The persistence of offshore dominance is closely tied to the fragmented structure of U.S. gambling regulation. Several of the country’s largest markets still operate without any online gambling legalization, while many regulated states allow sports betting but not online casinos — creating structural gaps that offshore platforms continue to fill.

States that offer full online gambling regulation, including both sports betting and casino, show significantly lower offshore penetration. Markets such as New Jersey and Michigan capture roughly three quarters of their online gambling value domestically, demonstrating that comprehensive regulation can meaningfully increase channelization. However, no U.S. jurisdiction has fully eliminated offshore activity.