AGA: Americans wager $673.6bn annually with illegal operators

Key points:  

– The AGA has posted its latest black market report, showing black market share reduction in iGaming and sports betting 

– An esitmated $673.6bn is wagered annually via the illegal market, according to the report 

– Total estimated annual iGaming revenue from the black market is now $18.6bn, up 38% since 2022 

The American Gaming Association (AGA) has released a new report highlighting that Americans wager an estimated $673.6bn via the black market annually, with the unregulated space having grown by 22% since 2022.  

Also specified as part of this report is the current market share of the unregulated sector in the US market – which lies at just over one third (31.9%) of the total gambling market in the US. Overall, estimated annual revenue from the US’ black market is $53.9bn, with annual state gaming tax revenue loss reaching $15.3bn.  

Despite some discouraging statistics highlighted by the report, illegal operators hold smaller respective iGaming and sports betting market shares than in 2022, as shown below.  

Graph sourced via the AGA website*

US iGaming market outlook 

Indeed, this latest AGA report underlines an estimated $466.2bn wagered every year on online slots and table games – making the illegal iGaming market by far the dominant black market sector. Of this annual spend, a total estimated revenue of $18.6bn is generated, leading to a $4.8bn state gaming tax revenue loss.  

This estimated revenue figure of $18.6bn has risen by approximately 38% since findings revealed in 2022, with the share of players who only accessed legal iGaming sites falling from 52% to 24%, presently. Elsewhere, the share of players accessing both legal and illegal sites has tripled to 49% compared to results from 2022.  

US land-based market outlook 

Estimated illegal land-based gaming handle falls behind iGaming at $123.4bn annually, however leads to a much higher estimated revenue of $30.3bn. Elsewhere, estimated state gaming tax revenue loss from the land-based market also represents the highest figure of the three gambling sectors at $9.5bn.  

Unregulated machines have been underlined as a key threat to the US industry in this report, with 625,000+ machines now in operation across the nation – 7.7% higher than figures recorded in 2022. These machines account for approximately $30.3bn in revenue annually, costing $9.5bn in lost tax revenue.  

US sports betting market outlook  

Regarding sports betting, esitmated annual black market handle is highlighted at $84bn as part of this AGA report, with revenue settling at $5bn and state gaming tax revenue loss at $1bn. This gambling sector remains perhaps the most positive of the three, with black market share having decreased from 36% in 2022 to 24% currently. However, one in ten players in the US market still wager exclusively with illegal sportsbook operators.  

Good to know: In May, the AGA revealed that the US commercial gaming revenue figure for FY 2024 was $72bn 

AGA’s comments  

Speaking on the results of this latest report, AGA President and CEO, Bill Miller, said: “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. 

“These bad actors operate in the shadows with zero consumer protections, no responsible gaming obligations, and no economic return to the communities they exploit. Combating them requires not only stronger US enforcement, but also continuing to work closely with our international partners to shut down offshore operators and hold them accountable.”