With per capita illegal GGR considerably higher in states where igaming and sports betting are legal, new research suggests that legal online gambling may be inadvertently increasing illegal gaming revenue in the United States.
According to research co-authored by the Campaign for Fairer gaming and data platform Yield Sec, illegal operators dominate the US online gaming sector, accounting for 74% of total gross gambling income earned in the country.
As per the most recent addition to the USA National Online Gambling Report 2024, a state’s total gambling income per capita rises when it offers legal online gambling options, rather than decreasing its illegal market.
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Illegal GGR in jurisdictions without authorized internet gambling, such as Texas, averages US$124.48 per capita (0.31% of revenue). In contrast, the average unlawful GGR in states with legal igaming and sports betting (such as Michigan) is US$212.97 per capita, or 1.12% of income, representing a 261% difference.
The Campaign for Fairer Gambling warns that the expansion of legal gambling is just serving to strengthen a larger market that favours illicit operators in the absence of vigorous enforcement.
Regulators in states like Michigan, which allow legal online gaming and sports betting, often file lawsuits against unlicensed websites that operate there as part of their continuous efforts to stop illicit gambling sites.
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