Adam Roarty is a journalist covering sports betting, regulation, and industry innovation for CasinoBeats. His coverage includes tax increases in the UK, covering breaking stories in the ever-evolving landscape of US betting such as the...
Read Full BioA new report published by the American Gaming Association (AGA) has revealed that unregulated gambling accounts for less of the overall gambling market share compared to three years ago.
The drop is most prominent in sports betting, with the AGA report indicating that the market share of unregulated sportsbooks has fallen by 12% since 2022. This coincides with six states expanding the legal sports betting market, with Missouri set to add to that list later this year.
Legal sportsbooks in the US generated $15.9 billion in revenue over the past year, compared to $5 billion from unregulated sportsbooks. In total, US bettors wagered an estimated $84 billion at unlicensed sports betting sites or bookies over the past year. The amount bet at regulated sportsbooks was more than double, at $172.1 billion.
The figures of the unregulated industry are not reported, but are based on survey data collected from 2,454 US adults. The numbers are, therefore, estimates at best.
Overall, unregulated gambling is said to have accounted for 31% of the overall gambling market share, down from 33% in 2022. In total, Americans are estimated to have wagered $673.6 billion on unregulated gambling over the past year.
Data Shows Unregulated Casinos Grow, But Legal Market Share Increases
According to the AGA’s 2022 analysis, the unregulated iGaming market generated approximately $13.5 billion in annual revenue, which was nearly three times the size of the legal U.S. iGaming revenue (around $5 billion).
In 2025, the revenue generated has grown by around 38% to $18.6 billion, but revenue from legal iGaming has almost doubled, up from $4.6 billion to $9.8 billion. All seven states that allow legal online casinos reported record revenue in 2024.
If including all casino revenue, the legal market easily eclipses the unregulated market, generating revenue of $92.8 billion.
AGA Urges More Action to Reduce Unregulated Market
The AGA, made up of the country’s leading sportsbooks, tribal gaming groups, and gaming suppliers, urges a further increase in the market share of its members.
AGA President and CEO Bill Miller stated, “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.”
States have increasingly targeted unregulated platforms, with New York, Montana, Connecticut, and Nevada all passing new legislation this year that explicitly bans sweepstakes casinos.
Numerous lawsuits have also been filed against operators across the country, but there have been mixed results, leading to some platforms resuming operations.
The legal battles between AGA members and prediction markets are also increasing, but the main takeaway from the latest AGA report is that both legal and unregulated gambling are thriving. Americans continue betting in bigger and bigger numbers every year, no matter whether it’s at casinos, sportsbooks, online, or through sweepstakes.
