#United States #Washington #illegal gambling #CFG report #U.S. online gambling

Alarming Rise of Illegal Online Gambling in the U.S.

A recent study conducted by the Campaign for Fairer Gambling (CFG) has exposed the startling dynamics within the U.S. online gambling market, revealing that illegal operators currently control a staggering 74% of the market, which is valued at an estimated $90.1 billion. This report, titled "USA National 2024," underscores a critical moment for both consumers and regulators as illegal gambling revenues skyrocketed 64% in the previous year, outpacing the legal market's growth rate of 36%.

According to the CFG report, approximately 88% of U.S. online audiences have been exposed to illegal gambling content during their internet usage, occurring across various platforms such as social media, apps, and streaming services. This widespread exposure has led to a growing concern among stakeholders regarding the implications for consumer safety and state revenues. Despite the expansion of legalized online gambling in several states, illegal operators continue to dominate due to competitive pricing, expansive product offerings, and aggressive marketing strategies.

The Impact of Major Events

Notably, major sporting events like the Super Bowl and the Olympics in 2024 have acted as catalysts for illegal gambling activities, drawing in massive traffic to these unregulated platforms. Many illegal operators leverage these events to promote both traditional gambling and new products, including betting on elections and tariff outcomes, further complicating the landscape for legal operators.

The report also asserts that the engagement levels with illegal platforms are alarmingly high. With major spikes in traffic observed during significant sporting events, illegal operators are efficiently converting one-time users into regular customers, ultimately siphoning away substantial sums from legal channels. As articulated by Derek Webb, founder of CFG, the current approach to legalizing online gambling in the U.S. without a robust strategy to combat illegal operations has resulted in dire consequences. For instance, Webb compares California's situation—where online gambling remains illegal—with New Jersey, where the regulated market has thrived, illustrating the ineffectiveness of leaving regulatory gaps unattended.

The Role of Stakeholders in Mitigating Issues

Amidst calls for increased cooperation among legislators, regulators, and industry leaders to mitigate illegal gambling offenses, Ismail Vali, CEO of Yield Sec, pointed out the shared responsibility in addressing this issue. The CFG report identifies a staggering disparity in the number of illegal versus legal operators, with 917 illegal online gambling sites actively targeting U.S. users compared to only 95 licensed operators. Moreover, the proportion of affiliates promoting illegal operations has swelled to 668, compared to 106 for legal brands, highlighting the overwhelming presence of illicit content across digital platforms.

The gravity of the situation cannot be overstated, as the yield losses attributed to illegal gambling activities are critically undermining state revenue streams and consumer trust alike. The CFG report urges immediate actions to safeguard the interests of consumers while fostering a secure online gambling environment.

Conclusion

As we advance toward 2025, without swift action against illegal gambling initiatives, the dominance of these unregulated platforms is set to entrench further, making it imperative for all stakeholders to unite in the fight against online crime. The time for effective intervention is now, as the future of the American online gambling landscape hangs in the balance.