The American Gaming Association (AGA) has released a sobering new report revealing the significant and growing impact of illegal gambling in the United States, highlighting the urgent need for a national response. Here are the key takeaways:
📊 Scope and Scale of Illegal Gambling
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$673.6 billion is wagered annually by Americans through illegal operators, including:
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Unlicensed sports betting
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Illegal iGaming (online gambling)
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Unregulated skill games
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These activities account for nearly one-third (31.9%) of the total U.S. gaming market.
💰 Economic Impact
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Illegal gambling operators earn an estimated $53.9 billion in annual revenue.
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This translates into $15.3 billion in lost taxes for states and communities — revenue that could fund:
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Education
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Public safety
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Infrastructure
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Healthcare and more
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🔍 Segment Breakdown
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Illegal Sports Betting:
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$84 billion wagered in the last year
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$5 billion in illegal revenue
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$1 billion in lost tax revenue
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Illegal iGaming:
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Annual revenue has grown 38% since 2022 to $18.6 billion
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Legal participation is dropping: Only 24% of iGamers use legal sites exclusively (down from 52% in 2022)
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49% use both legal and illegal sites – a troubling rise
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Unregulated Skill Machines:
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Approximately 625,000 machines nationwide
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Generate $30.3 billion in revenue
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Cause $9.5 billion in tax losses
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Up 7.7% since 2022
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⚠️ Consumer and Regulatory Risks
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Illegal operators:
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Pay no taxes
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Provide no consumer protections
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Do not adhere to responsible gaming standards
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Undermine legal, regulated markets
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🗣️ Call to Action
Bill Miller, President & CEO of the AGA, emphasized:
He advocates for:
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Federal and state enforcement coordination
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Stronger consumer education
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Enhanced regulatory tools and cooperation
🧭 Conclusion
The AGA’s report is a clear warning: the illegal gambling market is expanding fast, outpacing regulation and enforcement. Without action, both public safety and state economies are at risk.
If you’d like, I can summarize this into a shorter briefing, convert it to a slide deck outline, or help create a press release or talking points based on it.