New Report Shows Illegal Gambling Still Winning Over Legal Options in the US

A recent report from Yield Sec, a market intelligence firm specializing in predictive analytics, has revealed the continued dominance of illegal gambling in the US, despite the expansion of regulated options.

In the first half of 2024, legal platforms generated $10.8 billion in GGR, while illegal operators raked in an estimated $29.1 billion — almost three times as much. Yield Sec identified 892 illegal operators and 651 affiliates actively promoting these platforms.

Key findings from the report:

• Legal gambling expansion continues, with North Carolina and Vermont joining the market in 2024.

• North Carolina alone saw $340 million in wagers and $42 million in revenue in its first five months.

• The illegal market is projected to reach $60 billion in GGR by the end of 2024.

Market trends and concerns:

• The illegal gambling market saw $42 billion in GGR in 2022, a dip to $40.9 billion in 2023, and a rebound this year.

• Legal operators remain under heavy pressure as billions in potential revenue are diverted to unlicensed platforms.

• Yield Sec’s CEO, Ismail Vail, emphasized the need to recover lost revenue to strengthen regulated markets and tax returns.

Broader context:

• Data from the American Gaming Association (AGA) supports these findings, reporting $10.62 billion in GGR for legal sports betting and iGaming in early 2024.

• AGA’s figures for 2023 ($17.21B) and 2022 ($12.52B) show steady growth in the legal sector.

• The final four months of 2024 — with the college football and NFL seasons — could account for 35% of annual betting activity, potentially doubling total operator handle.

As 2024 progresses, both legal and illegal gambling markets are set for strong growth, with the latter continuing to challenge regulators and operators nationwide.