Summary:
- $9.5bn in illegal gambling reportedly took place in NJ, NY & MN.
- The figure is almost a quarter of the $40.92 billion in illegal gambling revenues in the US.
- Campaign for Fairer Gambling calls for federal assistance in shutting down illegal sites.
The Campaign for Fairer Gambling and Yield Sec has unveiled a new report on the United States online gambling market. The report’s findings are staggering, revealing that over $40.9 billion in illegal revenues from online gambling were recorded in the US. Of this massive amount, a significant $9.5 billion was generated in New York, New Jersey, and Minnesota.
These figures underscore the gravity of the situation, particularly as New York boasts a thriving sports betting market, New Jersey has a robust history of iGaming, and Minnesota, despite not offering any online gambling services, still contributes to the illegal revenue.
Surveying the Gambling Landscape
Yield Sec, commissioned by the Campaign for Fairer Gambling, conducted a comprehensive analysis of the online gambling services offered by both legal and illegal operators. The results of their study are concerning, revealing that illegal operators are not just present, but are actually dominating the market, with no significant challenges to their operations.
Derek Webb, the CFG founder, stated that although legalized iGaming is growing in the US, the illegal sector remains unchallenged. In NJ, NY, and MN, over 800 illegal operators are offering services. New legislation, regulation of services, and tax rates have had zero effect on the illegal market’s operation.
Federal Involvement Needed
According to Webb, federal involvement is needed to ensure that the online gambling sector is not affected by the illegal market. Policymakers must review real and reliable data so they can be informed about what is going on in the gambling industry.
Webb stated further that the data and analysis show that illegal gambling operators are brazenly stealing money from states and at a federal level, as well as the legal American iGaming industry. The numbers from the study are astounding.
New York’s details covered online sports betting and casino games, showing that 49% of the online marketplace gross gaming revenues go towards illegal casino gaming providers. An additional 27% of the market is reserved for illegal sports betting online.
In New Jersey, 16% of the market is provided to the illegal casino sector and 22% to illegal online sports wagers. In Minnesota, where iGaming is not legalized, 38% of the online marketplace GGR goes to online sports and 62% to casino gaming.
Will these numbers help federal lawmakers feel the need to shut down the illegal iGaming providers?
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