• Loading stock data...
Tuesday, April 29, 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

July 9, 2009; Auburn Hills, MI, USA; Detroit Pistons president Joe Dumars during the press conference to introduce their new head coach John Kuester at their practice facility.

Joe Dumars Leaving NBA League Office to Run Pelicans

Joe Dumars was the architect of the 2004 champion Pistons.
Sports gambling reached an all-time high in 2022.

Kalshi Gears Up for Legal Fight With States

Maryland followed at least five other states that have sent cease-and-desist letters.
Potawatomi Sports Book patrons the University of Wisconsin men play UCLA on Friday, March 14, 2025. The venue is open for the first time during March Madness and is expecting to be busy over the next few weeks in Milwaukee.

Kalshi Notches Legal Win in Fight With Nevada

Kalshi can keep offering its sports event contracts in Nevada—for now.
Potawatomi Sportsbook patrons watch the University of Wisconsin men play UCLA on Friday, March 14, 2025. The venue is open for the first time during March Madness and is expecting to be busy over the next few weeks in Milwaukee.

All Signs Point to Trump Admin OK’ing Kalshi’s Sports Contracts

The federal government appears ready to approve Kalshi’s sports event contracts.

Featured Today

How DJ Adam Amin Mixes Baseball With Bangers

Amin is one of Fox’s top NFL and MLB voices.
Jun 21, 2024; Boston, MA, USA; Boston Celtics majority owner Wyc Grousbeck holds the Larry O’Brien trophy prior to the Boston Celtics championship parade.
April 27, 2025

The Celtics Succession Plan Remains Murky

The transfer of power to a private-equity group is still unresolved.
April 26, 2025

The Rays Groundskeepers Are Adjusting to Life Outside the Dome

After nearly three decades in a dome, Tampa groundskeepers were forced outside.
April 25, 2025

The Former NBA Agent Who Became a Pickleball Deputy Commissioner

Chris Patrick went from representing Jimmy Butler to pickleball deputy commissioner.
United States District Court, District of New Jersey. Federal Courthouse in Newark. on Thursday Feb. 11, 2021. Newark Federal Courthouse

Kalshi Gains More Legal Momentum With Early New Jersey Win

Kalshi has begun racking up early legal victories as it defends its sports event contracts.
The sun rises behind the New York skyline seen from the Jersey City waterfront on Thursday morning Dec. 10, 2020.
April 22, 2025

N.Y. Sports Betting Faces Major Limits Under New Proposal

Newly proposed legislation would impose daily betting caps and limit advertising.
Apr 22, 2025; Los Angeles, California, USA; Los Angeles Lakers guard Luka Doncic (77) shoots the ball over Minnesota Timberwolves forward Julius Randle (30) during the third quarter of game two of first round for the 2024 NBA Playoffs at Crypto.com Arena.
April 23, 2025

Kalshi’s Offensive Blitz Continues With Suit Against Maryland

Kalshi previously sued regulators in Nevada and New Jersey.
Sponsored

Game On: Portfolio Players Stories, Brought to You by E*TRADE from Morgan Stanley

Portfolio Players is our bi-weekly spotlight on the athletes and investors reshaping the business of sports. This week, venture capitalist Kai Cunningham unpacks why athletes land top deals and how the usual investing rules don’t always apply.
April 16, 2025

Sports Prediction Markets Still Face Legal Roadblocks

The Wire Act and tribal sovereignty could be the next legal battlegrounds.
April 14, 2025

Bank Says Sports Betting Could Weather Tariff Storm

Lower tax revenues could encourage more states to legalize sports betting.
April 3, 2025

Baltimore Sues DraftKings, FanDuel Over ‘Exploiting’ Gambling Addicts

The suit cites steps the companies took in the U.K.
Mar 27, 2025; Newark, NJ, USA; A view of March Madness signage and the court before an East Regional semifinal of the 2025 NCAA tournament between the Alabama Crimson Tide and the Brigham Young Cougars at Prudential Center.
March 28, 2025

Kalshi Sues After Robinhood Takes Down New Jersey March Madness Markets

New Jersey regulators sent a cease-and-desist letter.