Black Market Gambling Beats Legal Bets
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The online gambling market mirrors the cannabis industry in one key respect: the black market is outperforming its licensed counterparts, including sportsbooks and casinos.
In 2024, online gross gaming revenue, customer bets minus winnings, in the U.S. reached $90.1B. Of that, $67.1B, or 74% of the market, flowed to unlicensed operators.
The report also revealed that unlicensed operators had outnumbered licensed ones targeting U.S. users by a ratio of 10 to 1.
Because these illegal operations bypass U.S. taxes and avoid the costly, time-consuming licensing process, they gain a competitive edge by offering better odds, a wider range of products, and more aggressive promotions such as larger bonuses.
The online gambling industry is at an inflection point. The federal government must either address rogue jurisdictions such as Curacao and Malta, whose licensees illegally target American consumers, or risk allowing unlicensed operators to take over the market.
From cannabis to gambling, vice markets are stuck between a rock and a hard place.
