Online Gambling Expansion in the U.S. Fails to Reduce Crime, CFG Reports 2024
The Campaign for Fairer Gambling (CFG) has recently published its highly anticipated CFG USA 2024 State Supplement #2 report, presenting alarming insights into the growth of illegal online gambling despite the legalization efforts across various states. This final report in the CFG USA 2024 Series emphasizes a troubling fact: the rapid expansion of legal online gambling is associated with an increase in overall gambling activities and consumer losses, while crime remains prevalent in the marketplace.
According to an analysis conducted by Yield Sec, a technical marketplace intelligence platform, the 2024 report provides a thorough examination of the online sports betting, casino, and poker industries at both national and state levels. The data reveals that states with a higher number of legal operators record the largest Gross Gambling Revenue (GGR) per capita. However, the illegal sector is still dominating the market by capturing an astonishing 74% of the total GGR in the U.S. online gambling landscape.
The report shows that in 2024, the total worth of the U.S. online gambling market reached a staggering $90.1 billion, of which $67.1 billion was attributed to illegal operations. What's worse, the illegal sector has experienced a remarkable growth rate of 64% over the past year, significantly outpacing the legal sector's 36% growth rate.
Notably, there are three states—Oregon, Maine, and Arkansas—with legalized online sports betting where gambling revenue per capita falls below the average GGR percentage for states without legalization. These states boast a combined average of just two operators, well below the national average of nine. Similarly, Delaware, Rhode Island, and Connecticut experience lower than average GGR per capita, despite having legalized both online sports betting and casino gaming, with an average of only three operators compared to the national average of 14.
This data suggests a strong correlation between the limited number of legal operators and reduced GGR per capita. Proponents of legalization argue that an increase in the number of legal operators should enhance competition and effectively shrink the illegal sector. However, the findings presented in CFG's report challenge this viewpoint, demanding accountability from these advocates who may have misled legislators with their assertions.
Derek Webb, the Founder and Funder of CFG, stated, "It is now the responsibility of those in favor of legalization to clarify their stance regarding the large discrepancies seen in the market. An apology to the legislators is warranted as their previous claims have not held true. A moratorium on state-level expansions should be seriously considered until effective measures are introduced to curb illegal gambling revenues and ensure control over these marketplaces."
Ismail Vali, founder and CEO of Yield Sec, echoed these sentiments, highlighting that the legalization movement was initially intended to dismantle illegal gambling networks but has failed to achieve this goal. Instead, seven years after the initiation of state-by-state legalization in 2018, the U.S. online gambling sector remains congested with illegal activities. He warned that illegal gambling is not a singular issue but rather a complex set of challenges, and effective control mechanisms must be implemented through processes involving monitoring, policing, enforcement, and optimization. Vali emphasized the significance of addressing this matter, stating that crime has siphoned off hundreds of billions from American commerce and communities over several decades, which cannot continue.
The implications of this report are vast—not only does it expose the ongoing struggles faced by states attempting to regulate gambling activities, but it also raises ethical concerns regarding the future of gambling legislation in the U.S. The findings illustrate a critical need for a reevaluation of the approach towards online gambling, focusing on regulations that genuinely mitigate crime and reinforce the integrity of legal markets. As it stands, online gambling regulation is proving to be a double-edged sword, prompting additional questions about the balance between consumer freedom and the protection against criminal activities.
For more information and to access the completo series of CFG USA 2024 reports, visit the CFG's official page.
According to an analysis conducted by Yield Sec, a technical marketplace intelligence platform, the 2024 report provides a thorough examination of the online sports betting, casino, and poker industries at both national and state levels. The data reveals that states with a higher number of legal operators record the largest Gross Gambling Revenue (GGR) per capita. However, the illegal sector is still dominating the market by capturing an astonishing 74% of the total GGR in the U.S. online gambling landscape.
The report shows that in 2024, the total worth of the U.S. online gambling market reached a staggering $90.1 billion, of which $67.1 billion was attributed to illegal operations. What's worse, the illegal sector has experienced a remarkable growth rate of 64% over the past year, significantly outpacing the legal sector's 36% growth rate.
Notably, there are three states—Oregon, Maine, and Arkansas—with legalized online sports betting where gambling revenue per capita falls below the average GGR percentage for states without legalization. These states boast a combined average of just two operators, well below the national average of nine. Similarly, Delaware, Rhode Island, and Connecticut experience lower than average GGR per capita, despite having legalized both online sports betting and casino gaming, with an average of only three operators compared to the national average of 14.
This data suggests a strong correlation between the limited number of legal operators and reduced GGR per capita. Proponents of legalization argue that an increase in the number of legal operators should enhance competition and effectively shrink the illegal sector. However, the findings presented in CFG's report challenge this viewpoint, demanding accountability from these advocates who may have misled legislators with their assertions.
Derek Webb, the Founder and Funder of CFG, stated, "It is now the responsibility of those in favor of legalization to clarify their stance regarding the large discrepancies seen in the market. An apology to the legislators is warranted as their previous claims have not held true. A moratorium on state-level expansions should be seriously considered until effective measures are introduced to curb illegal gambling revenues and ensure control over these marketplaces."
Ismail Vali, founder and CEO of Yield Sec, echoed these sentiments, highlighting that the legalization movement was initially intended to dismantle illegal gambling networks but has failed to achieve this goal. Instead, seven years after the initiation of state-by-state legalization in 2018, the U.S. online gambling sector remains congested with illegal activities. He warned that illegal gambling is not a singular issue but rather a complex set of challenges, and effective control mechanisms must be implemented through processes involving monitoring, policing, enforcement, and optimization. Vali emphasized the significance of addressing this matter, stating that crime has siphoned off hundreds of billions from American commerce and communities over several decades, which cannot continue.
The implications of this report are vast—not only does it expose the ongoing struggles faced by states attempting to regulate gambling activities, but it also raises ethical concerns regarding the future of gambling legislation in the U.S. The findings illustrate a critical need for a reevaluation of the approach towards online gambling, focusing on regulations that genuinely mitigate crime and reinforce the integrity of legal markets. As it stands, online gambling regulation is proving to be a double-edged sword, prompting additional questions about the balance between consumer freedom and the protection against criminal activities.
For more information and to access the completo series of CFG USA 2024 reports, visit the CFG's official page.
Topics Policy & Public Interest）
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