US online gambling revenue from illegal operators reached $97.4 billion in 2025, according to a new industry report. This marks a 45.2% increase, outpacing the growth seen in the regulated market.
Gaming Compliance International (GCI) produced the study for the Campaign for Fairer Gambling. The data shows that unlicensed platforms accounted for 77% of the total US online gambling GGR, up from 74% in the previous year. Meanwhile, regulated online gambling revenue grew by 23% to $28.3 billion.
Total online gambling losses across both sectors rose from $90.1 billion in 2024 to $125.6 billion in 2025.
Derek Webb, who funds the Campaign for Fairer Gambling, addressed the market dynamics. "The legal sector uses the presence of the illicit sector to demand legalisation, then asks for low tax and regulation to compete against the illicit sector," Webb said. "Taking action against bad actors in the illicit sector is the solution and must be the priority for all stakeholders."
State-by-State Analysis
The report evaluated regional performance using a loss ratio, measuring online gambling GGR per capita against income per capita. States offering regulated online sports betting and casino gaming averaged a 1.38% ratio in 2025. Regions with only sports betting regulation averaged 0.99%, while states with no regulated online products averaged 0.44%.
Louisiana recorded the highest gambling spending-to-income ratio, with the majority of activity linked to illegal operators. West Virginia, where both product types are legal, posted a total loss ratio of 1.57%, with 0.87 percentage points attributed to unregulated activity. In California, where online sports betting and casino gaming are not legal, the 0.43% loss ratio consisted entirely of unregulated activity.