Review: Focus Gaming News on the $97.4bn illegal US market

Focus Gaming News reports on a new Gaming Compliance International study, commissioned by the Campaign for Fairer Gambling, estimating that illegal US online gambling revenue reached $97.4bn in 2025, up 45.2% year on year — roughly 3.4 times the size of the regulated market's $28.3bn. The piece also flags that unlicensed operators now account for 77% of total US online gambling GGR, up from 74% the prior year.

The significance goes beyond the headline figure. This report directly challenges the industry's core legalisation argument: that bringing gambling into a regulated framework channels demand away from black-market operators. Instead, the data suggests legal expansion is growing the overall market while illegal supply keeps pace or faster — a warning sign for regulators who have relied on licensing and taxation as the primary cure for offshore and unlicensed activity.

The state-level loss ratios add texture, particularly the finding that states with both legal sports betting and casino gaming still show substantial unregulated activity. That undercuts the assumption that full legalisation, by itself, materially shrinks the illegal market. For licensed operators, the takeaway is competitive: they are paying tax and compliance costs while a large, fast-growing rival segment does not. For investors, the total market picture matters more than state revenue reports.

One caveat: the funder is an advocacy voice with a stated enforcement-first agenda. Derek Webb, who funds the Campaign for Fairer Gambling, is quoted saying: "Taking action against bad actors in the illicit sector is the solution and must be the priority for all stakeholders." Readers should weigh the methodology and incentives behind the numbers.

Read the original piece on Focus Gaming News for the full state-by-state breakdown, loss-ratio methodology, and the complete quotes from the report's authors.