AGA data reveals illegal gambling costs US states US$15 billion in lost taxes
US states are losing out on an estimated US$15.3 billion in tax revenue each year, as illegal operators make up nearly one-third of the total US gambling market, according to the American Gaming Association.
According to the findings, Americans bet an estimated US$673.6 billion yearly on offshore sites, unregulated skill machines, and illegal sportsbooks.
This activity generates US$53.9 billion in revenue for these operators while sidestepping licensed casinos and robbing communities of infrastructure, education, and public safety funds.
Due to the increase in unlawful online casino games, sports betting, and unregulated skill games, the illegal market has surged by 22% since 2022.
Of this, illegal online slots and table games revenue hit US$18.6 billion, up 38% since 2022, while the share of online players using only legal sites dropped from 52% to 24%.
Illegal sports betting accounted for US$84 billion in wagers, generating US$5 billion in revenue and US$1 billion in lost taxes, though its share of the total US sportsbook market declined from 36% in 2022 to 24%.
American Gaming Association President Bill Miller said, “Illegal gambling operators are thriving at the expense of American consumers, siphoning billions in tax revenue from state governments, and undercutting the efforts of the legal market. It’s time for a national crackdown on the pervasive illegal market that is draining state coffers and putting people at risk.”
As a result of the study, the American Gaming Association is advocating for stronger US enforcement and greater international cooperation to shut down offshore operators and protect the regulated gaming industry.
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Charlotte Capewell brings her passion for storytelling and expertise in writing, researching, and the gambling industry to every article she writes. Her specialties include the US gambling industry, regulator legislation, igaming, and more.
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