Most U.S. Online Gambling Revenue Still Goes to Offshore Sites

The U.S. online gambling market continues to expand, but most of the money is still flowing through offshore operators. A new report from the Campaign for Fairer Gambling, compiled by Yield Sec, highlights just how dominant illegal platforms remain—even as more states legalize online gambling.

Good to know

• Offshore operators captured 74% of the $90.1 billion online gambling market in 2024.
• Legal sites accounted for just $23 billion, or 26% of total GGR.
• Audience exposure for licensed platforms stood at only 12% across major channels.

While legal platforms saw a 26% rise in gross gambling revenue (GGR) in 2024, offshore operators grew at an even faster pace—up 64% year over year. Yield Sec’s report identified 917 illegal gambling platforms operating in the U.S., supported by 668 affiliate marketers. In contrast, only 95 legal sites were tracked, with far fewer affiliates promoting them.

Ismail Vali, CEO of Yield Sec, pointed to the lack of tax and regulatory constraints for offshore sites. These unlicensed operators can lure players with bigger bonuses and fewer restrictions—two factors that help explain their continued market share.

Legal operators are also up against sweepstakes casinos, which operate in a gray area in many states. These platforms avoid licensing requirements by offering virtual currency and prize-based play. While some states like Montana and Connecticut have imposed bans, others are just beginning to take action. New York, for example, has recently stepped up enforcement against such sites.

State-by-state differences tell a larger story

In states where online gambling is legal—such as Pennsylvania, New Jersey, and Michigan—regulated platforms have done a better job of capturing market share. Legal operators controlled between 57% and 58% of GGR in these states.

The story looks very different in places like California, Texas, and Ohio. In those states, where gambling laws remain limited or absent, offshore operators dominate. Ohio, in particular, stands out. It recorded $5.26 billion in illegal GGR, accounting for 85% of the state’s total online gambling market.

Ohio also posted the highest per capita GGR from online casinos at $316. In terms of illegal sports betting, the state led the country with $130 per capita. Just one year after sports betting became legal, average gambling losses in Ohio amounted to 1.33% of individual income—more than twice the national average.

Legal gambling has not replaced illegal activity

One major point from the report is that legalization alone does not shrink the illegal market. Instead, total gambling losses increase while illegal operators continue to thrive. In states with no legal online gambling, GGR per capita stood at 0.31% of income. That number climbed to 0.77% in states with legal sports betting, and 1.12% in states with both sports betting and online casinos—a 261% jump.

CFG founder Derek Webb stressed that enforcement must become a higher priority. “Consumer losses grow with legalization,” he said. Vali added that licensed markets risk losing users and revenue unless stronger measures are taken against illegal operators.

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