• Loading stock data...
Wednesday, October 8, 2025

Report: Americans Place $63.8B in Illegal Sports Bets Each Year

  • That leads to an estimated $3.8B in lost revenue for legal sportsbooks.
  • States with legal sports betting lose an estimated $700 million in tax revenue.
Man holding dollar bills
Erin Woodiel / Argus Leader / USA TODAY NETWORK

Even as the legal sports betting market continues to grow and rake in revenue in the United States, the prevalence of illegal sports betting remains relatively widespread.

According to a new report from the American Gaming Association, bettors place an estimated $63.8 billion on sports bets with illegal offshore sportsbooks and bookies every year.

That leads to an estimated $3.8 billion in lost revenue for legal sportsbooks, and an estimated $700 million in lost tax revenue for states with legal sports betting.

In the past year, 49% of sports bettors have placed a wager with an illegal operator; past AGA research shows that more than half of bettors who place bets illegally believe they are doing so legally.

Brazilian attacker Raphinha dribbles at Swiss defender during World Cup match up

World Cup Bets Expected to Hit $35B

Analysts expect a 65% uptick in World Cup sports bets from 2018.
November 29, 2022

By handle, illegal sports betting was more prevalent in certain regions of the country than others.

  • South: $29.5B
  • Midwest: $17B
  • Northeast: $10.4B
  • West: $7B

It’s worth noting that, among southern states, mobile sports betting is currently only operational in Arkansas, Louisiana, and Tennessee.

Still, even with all of this money passing through illegal channels, the American sports betting industry is on pace for a landmark year.

Legal sportsbooks are expecting to handle $100 billion in bets this year, and the industry posted $4.78 billion in revenue through three quarters — already higher than the full-year record of $4.34 billion set in 2021.

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

NYSE

NYSE Owner Pours $2B Into Polymarket at $8B Valuation

Prediction markets keep pushing further into the mainstream.

Live Personalized Betting Is Coming to Amazon’s NBA Streams

The streamer draws heavily from prior experience with the NFL and NASCAR.
Sep 18, 2025; Orchard Park, New York, USA; Buffalo Bills quarterback Josh Allen (17) runs the ball against the Miami Dolphins in the second half at Highmark Stadium.
exclusive

Kalshi, Polymarket Sought to Buy Prediction-Market Platform Novig

Novig is available in close to 40 states.

PrizePicks Sells $1.6B Stake, Launches Prediction Markets Business

PrizePicks’ CEO believes it is “the next $40 billion company in the U.S.”

Featured Today

Paul Cartier

Sports Organists Are Still Thriving in the Era of Raucous Arena Music

“When they walk out and they see a real organ guy, it’s like, ‘Wow.’”
Sep 27, 2025; Milwaukee, Wisconsin, USA; Milwaukee Brewers center fielder Jackson Chourio (11) rounds the bases after hitting a home run during the sixth inning against the Cincinnati Reds at American Family Field.
October 4, 2025

Milwaukee Moneyball: Brewers Are Beating MLB’s Deeper Pockets

Milwaukee is holding its own against big-budget competitors.
Kōloa Rum Company Rum Rusher
September 27, 2025

Panthers Bubbly, Jets Wine, Manning Whiskey: The Sports Booze Boom

A sommelier dives into the sports booze trend—and tries Jets wine.
Nov 17, 2024; Pittsburgh, Pennsylvania, USA; Pittsburgh Steelers fans wave Terrible Towels against the Baltimore Ravens during the fourth quarter at Acrisure Stadium
September 26, 2025

Steelers’ Irish Roots Are Deeper Than NFL Dublin Game

The Steelers have history and the foundation for a future in Ireland.

FanDuel, Jaguars Reach $5M Deal Over Employee Theft

A Jaguars employee stole $20 million and gambled much of it with FanDuel.
Sep 4, 2025; Philadelphia, Pennsylvania, USA; Philadelphia Eagles cornerback Adoree' Jackson (8) tackles Dallas Cowboys wide receiver CeeDee Lamb (88) during the third quarter of the game at Lincoln Financial Field.
September 5, 2025

Kalshi’s $27M NFL Opener Runs Into Tribal Challenge

California Tribes want Kalshi forced to implement geofencing.
Sep 8, 2025; Chicago, Illinois, USA; Chicago Bears quarterback Caleb Williams (18) rushes the ball past Minnesota Vikings safety Theo Jackson (26) during the second half at Soldier Field.
exclusive
September 10, 2025

Americans See Little Difference Between Prediction Markets and Betting

A survey found 85% of respondents believe sports event contracts are gambling.
Sponsored

How Jenny Just Is Shaping the Future of Sports Ownership

Jenny Just on bringing her investment experience to sports ownership.
Eagles
September 4, 2025

FanDuel Paying $80K for Eagles Trains Amid Transit Funding Fight

The gambling company is giving stopgap transit funding in Philadelphia.
Sep 1, 2025; Chapel Hill, North Carolina, USA; TCU Horned Frogs tight end DJ Rogers (0) catches a touchdown pass as North Carolina Tar Heels defensive back Kaleb Cost (21) defends in the fourth quarter at Kenan Stadium.
September 3, 2025

Polymarket Moves Closer to Reentering the U.S.

There’s yet more prediction markets momentum as the NFL season kicks off.
during the fourth quarter at Memorial Stadium in Clemson, S.C. Saturday, August 31, 2025.
September 2, 2025

Underdog Bets on Prediction Markets With Crypto.com Deal

Sports event contracts will be offered in 16 states.
Rob Bonta
August 29, 2025

Users Sue Daily Fantasy Companies After California Calls Them Illegal

Underdog Sports and Boom Fantasy were separately sued.