New AGA Report Shows Americans Gamble More Than Half a Trillion Dollars Illegally Each Year

Sports betting results

The AGA report finds that Americans are betting $63.8 billion with illegal bookmakers and offshore sites at the price of $3.8 billion in gaming revenue and $700 million in state taxes. With the Americans projected to place $100 billion in legal sports betting this year, these results imply that illegal sports betting operators are capturing nearly 40% of the US sports betting market.

While the numbers are significant, they also demonstrate the movement of Americans toward the regulated market with the expansion of legal sports betting to 36 states and the District of Colombia.

The report also revealed that 49% of sports bettors in the previous year placed a bet with an illegal operator. Previous AGA research shows that more than half of Americans who bet on sports with illegal operators believe they are betting legally.

iGaming Results

Americans are betting about $337.9 billion with illegal iGaming websites, with a loss of $3.9 billion in state tax revenue. With $13.5 billion in estimated revenue, the illegal iGaming market in the United States is almost three times the size of the legal iGaming market in the United States, estimated at $5 billion in 2022.

Since iGaming is only legal in six states, nearly half of Americans (48%) who have played online slots or table games in the past year have played with online casinos illegal.

Unregulated results of “Skill Machine”

Unregulated slot machines also continue to proliferate, with an estimated 580,651 unregulated machines in the United States.

Based on state regulatory data for similar machines, the operator’s payout percentage on unregulated gaming machines is significantly higher than on legal casino slots. Over the past 12 months, slot machines from Nevada have a success rate of 7.16%, compared to an estimated success rate of almost 25% for unregulated machines, which shows how unregulated machines take advantage of customers.

“All stakeholders – policymakers, law enforcement, regulators, legal businesses – must work together to eradicate the market for illegal and unregulated gambling. This is a long-term fight to protect consumers , supporting communities and upholding the law. loyal members of our industry.”

Methodology

The study was conducted by The Innovation Group on behalf of the American Gaming Association and is largely based on a survey of 5,284 American adults, examining their gaming behaviors over the past year with operators legal and illegal, as well as their observations of unregulated gaming machines. It also incorporates publicly available data on the size of the legal gaming market in the United States and some state gaming machine markets.

Background

  • Commercial or tribal casino gaming is legal in 36 states, iGaming is legal in six states, and sports betting is legal in 36 states and washington d.c.
  • AGA’s State of Gambling Map provides a state-by-state overview of legal and regulated gambling in the United States
  • StopIllegalGambling.com provides additional resources for consumers, industry stakeholders and the media to raise awareness of the importance of eliminating illegal gambling and bolster efforts to combat illegal operators.

About the AAG

As the national trade group representing the American casino industry, the American Gaming Association (AGA) fosters a political and business environment where legal and regulated gambling thrives. AGA’s diverse members, who are commercial and tribal casino operators, sports betting and iGaming companies, gaming providers, and more, drive the $261 billion industry and support 1.8 million jobs across the country.

SOURCE American Gaming Association

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