A new report from the American Gaming Association (AGA), published on August 13, 2025, reveals that Americans are wagering an astonishing $673.6 billion each year through illegal and unregulated gambling channels. The number shows the scale of the problem that continues to grow alongside the legal iGaming industry.
That figure is not a small margin. It is close to two thirds of what the licensed gambling sector generates annually. This shows how unregulated operators continue to drain money away from regulated platforms that pay taxes and follow compliance rules.
Black Market Overshadows Legal Play
Illegal gambling is far from a small or isolated problem. Even as more states introduce regulated sports betting and iGaming, millions of players still choose to wager with unlicensed providers. The sheer volume of money involved, including hundreds of billions flowing through offshore websites, unregulated apps, and sweepstakes casinos, makes the reach of the black market impossible to ignore.
Many of these operators present themselves with a look and feel similar to well-known legal platforms. That makes it difficult for casual players to recognize that they are engaging with unlicensed and potentially unsafe operators. Younger users are especially at risk, as they often assume any polished platform is legitimate.
Industry Pushback Gains Momentum
The AGA has made it clear that it plans to confront the problem directly. The group is working with state attorneys general to pressure the Department of Justice and the FBI to take action against offshore operators and sweepstakes casinos that are skirting regulations.
A recent survey found that 90 percent of players using sweepstakes-style platforms understand they are gambling and believe they should receive the same level of protection that regulated players enjoy. This undermines the claim from some operators that these platforms are for entertainment only.
With regulators, lawmakers, and the legal gaming industry pushing in the same direction, there is growing hope that the gap between regulated and unregulated gambling will begin to close. However, the size of the illegal market shows that the battle will be long and complex.
