• Loading stock data...
Thursday, October 23, 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

draftkings
exclusive

DraftKings Is Paying Up to $250M for Prediction-Market Railbird

The deal was announced Tuesday, but financials weren’t disclosed.
Sports are shown on TVs behind a bar as guests enjoy the grand opening of DraftKings Sports & Social in Ohio.

DraftKings Buys Prediction-Markets Platform but No Sports Just Yet

Front Office Sports reported DraftKings was in talks to buy Railbird in August.

The AWS Outage Wreaked Havoc in Sports

Ticketmaster, FanDuel, DraftKings, and Strava all had problems.
Inside NCAA Headquarters located in Indianapolis on Friday, March 10, 2023. Ncaa President Charlie Baker

NCAA Approves Plan to Let D-I College Athletes Bet on Pro Sports

The proposal still needs to be approved by D-II and D-III committees.

Featured Today

Christie's

Lou Gehrig’s $4M Jersey and the Exploding Sports Memorabilia Market

An ultra-rare sports collection is about to hit the auction block.
@chef__tezz/Instagram
October 19, 2025

Inside the NFL’s Private Chef Network

Private chefs are the unsung architects of player performance.
October 18, 2025

How Vanderbilt Went From SEC Doormat to Dark Horse CFP Candidate

After beating LSU, Clark Lea said: “Internally, we expect to win.”
May 27, 2025; Indianapolis, Indiana, USA; Indiana Pacers guard T.J. McConnell (9) shoots a three point basket over New York Knicks guard Josh Hart (3) during the third quarter of game four of the eastern conference finals for the 2025 NBA Playoffs at Gainbridge Fieldhouse
October 18, 2025

NBA Stars Swap Wine With League Friends and Foes

A wine-exchange tradition emerged from the bubble season’s close quarters.
Chauncey Billups
breaking

Terry Rozier, Chauncey Billups Arrested In FBI Gambling Probe

The Billups arrest is reportedly to an illegal Mafia poker operation.
NYSE
October 7, 2025

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

Prediction markets keep pushing further into the mainstream.
Jenny Just
October 13, 2025

Austin FC Co-Owner: Teach Your Daughters to Play Poker

She calls poker a “mind sport” like chess that teaches important life skills.
Sponsored

Michelle Wie West: Women’s Sports Doesn’t Need Charity

The LPGA legend on redefining women’s sports and the future of golf.
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
September 25, 2025

Kalshi, Polymarket Sought to Buy Prediction-Market Platform Novig

Novig is available in close to 40 states.
September 12, 2025

FanDuel, Jaguars Reach $5M Deal Over Employee Theft

A Jaguars employee stole $20 million and gambled much of it with FanDuel.
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.
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.