Illegal online gambling operators generated an estimated $97.4 billion in gross gaming revenue (GGR) from US consumers in 2025, according to a new report by Gaming Compliance International (GCI).
The figure represents a 45.2% increase from the estimated $67.1 billion generated by unregulated operators in 2024, with the illegal sector growing at almost twice the rate of the regulated online gambling market.
The report, commissioned and funded by the Campaign for Fairer Gambling (CFG), estimates that regulated online gambling revenue increased by 23% over the same period, rising from $23 billion in 2024 to $28.3 billion in 2025.
Taken together, GCI estimates that the US online gambling market generated $125.6 billion in total GGR in 2025, compared with $90.1 billion in 2024.
Unregulated operators account for 77% of the market
According to the report, unlicensed websites and apps accounted for approximately 77% of total US online gambling GGR in 2025, up from 74% a year earlier.
GCI’s analysis covers online sports betting, casino gaming, poker, lottery and crypto gambling products. Prediction markets are treated separately in the report, while daily fantasy sports, sweepstakes casinos and social casinos are excluded from the analysis.
The findings suggest that the expansion of regulated online gambling has not prevented the unlicensed market from growing.
Instead, GCI argues that the overall online gambling market has expanded, with illegal operators continuing to capture a substantial share of consumer spending alongside licensed businesses.
Derek Webb, who funds the Campaign for Fairer Gambling, called for greater enforcement against unlicensed operators.
“Taking action against bad actors in the illicit sector is the solution and must be the priority for all stakeholders.”
Gambling losses rise across the US
The report also examines online gambling activity through a metric known as the Loss Ratio, which compares gambling GGR per capita with income per capita.
According to GCI, US states where both online sports betting and online casino gaming are regulated recorded an average Loss Ratio of 1.38% in 2025, compared with 1.12% in 2024.
States where online sports betting is regulated but online casino gaming is not recorded an average ratio of 0.99%, up from 0.77% in 2024.
Meanwhile, states without regulated online sports betting or online casino gaming recorded an average Loss Ratio of 0.44%, compared with 0.31% in 2024.
Across the US as a whole, the ratio increased from 0.62% to 0.83% during the year.
Louisiana and West Virginia among the states highlighted
The report identifies Louisiana as having the highest ratio of gambling spending to income among US states. It also recorded the highest ratio of unregulated gambling expenditure relative to income, according to GCI.
West Virginia, where both online sports betting and online casino gaming are regulated, recorded a total Loss Ratio of 1.57%. GCI attributed 0.87 percentage points of that figure to the unregulated sector.
In California, where neither online sports betting nor online casino gaming is currently regulated, the report recorded a Loss Ratio of 0.43%, which GCI attributed entirely to unregulated activity.
The state-level comparisons form an important part of the report’s wider argument: the existence of regulated online gambling does not necessarily eliminate consumer demand for unlicensed operators.
Regulation alone may not be enough, report argues
GCI concludes that the continued expansion of the unregulated sector highlights the need for stronger enforcement against illegal operators as US states consider whether to expand regulated online gambling.
The findings are particularly relevant as the US continues to develop a fragmented regulatory landscape, with online sports betting available in a growing number of states while online casino gaming remains legal in a much smaller group of jurisdictions.
The report argues that policymakers should prioritise identifying and disrupting unlicensed operators, rather than relying on market expansion alone to reduce illegal gambling activity.
However, the findings should also be viewed in context.
The study was commissioned and funded by the Campaign for Fairer Gambling, an advocacy organisation that has consistently opposed further expansion of gambling markets. That does not invalidate the figures presented by GCI, but it is relevant when assessing the report’s conclusions and policy recommendations.
GCI says its estimates are based on online surveillance, proprietary data and licensed third-party datasets. The company also acknowledges that estimating large online gambling markets depends on the availability and completeness of data.
A growing challenge for US regulators
The latest figures add to an increasingly important debate in the US gambling industry: can regulated markets effectively compete with unlicensed operators, or does legalisation simply expand the overall gambling market while leaving the illegal sector intact?
The GCI report argues for the latter, while the scale of its estimate is likely to fuel further discussion among regulators, lawmakers and licensed operators about enforcement, consumer protection and the future expansion of online gambling in the US.
Sources
Gaming Compliance International (GCI) — Online Gambling 2025: USA
Primary source for the report’s estimates, market figures and Loss Ratio analysis.
Campaign for Fairer Gambling (CFG) — Commissioning and funding organisation behind the report.
Yogonet — US illegal online gambling jumps 45% to $97.4 billion in 2025, outpacing regulated sector, 12 August 2026.
SiGMA World — US illegal online gambling market reaches over $97B in 2025: GCI, 11 August 2026.
Forbes — Independent coverage and discussion of the GCI estimate and differing estimates of the US illegal gambling market.
American Gaming Association (AGA) — Commercial Gaming Revenue Tracker, used as an independent reference point for the US regulated gaming market.