Crime Still Dominates U.S. Online Gambling - Legalization Increases Total Losses by 261%, Warns CFG
WASHINGTON, June 13, 2025 /PRNewswire/ -- The Campaign for Fairer Gambling (CFG) today releases a supplement to its USA National Online Gambling Report 2024 which exposed that illegal online gambling takes 74% of total gross gambling revenue (GGR) in America. Commissioned by CFG and produced by online market intelligence platform, Yield Sec, the supplement analyzes all 50 states according to their regulatory status and shows that state legalization of online gambling - without the reduction and removal of illegal online gambling - increases total losses for American consumers by up to 261%.
The supplement groups US states into one of three regulatory realities:
- States with no legal online gambling (e.g. California, Texas)
- States with one form of legal online gambling - sports betting (e.g. New York, Florida)
- States with all forms of legal online gambling - sports betting and casino (e.g. Michigan, New Jersey)
The CFG State Supplement #1 demonstrates the effect of GGR per capita (the total marketplace value for legal and illegal online gambling divided by population) as a percentage of average income 2024 to further illustrate the burden across American consumers:
- Total online GGR (Legal + Illegal) per capita as a percentage of income:
- USA National: GGR per capita is 0.62% of average income
- States with no legal online sports betting or casino (e.g. California, Texas): GGR per capita is 0.31% of average income
- States with legal online sports betting only (e.g. New York, Florida): GGR per capita is 0.77% of average income
- States with both legal online sports betting and casino (e.g. Michigan, New Jersey): GGR per capita is 1.12% of average income
The supplement data makes clear that legalization of online gambling, without enforcement against illegal online gambling, increases the total loss and harm. When states legalize online sports betting only, GGR per capita as a percentage of income increases by 148% (from 0.31% to 0.77%). When both online sports betting and casino are legalized, it jumps by 261% (from 0.31% to 1.12%). If legalization truly replaced illegal gambling, the dominance of illegal gambling would diminish - but, the reality is that this is not a zero-sum game.
"Ohio is the alarm bell America needs to hear," states Derek Webb, Founder of CFG. "Just one year after legalizing online sports betting in 2023, losses for Ohioans had already reached 1.33% of average income per capita to online gambling - the heaviest burden in the country, and more than twice the national average. Across the U.S., we're not seeing illegal gambling being replaced, we're simply seeing total consumer losses grow. In states with full legalization, losses are now 261% higher than where there's no legal online gambling at all. This isn't progress, it's escalation."
Ismail Vali, founder and CEO of Yield Sec, added, "Yield Sec surveillance shows that the legal industry is being undermined at every turn by criminal competitors who offer greater value, bigger bonuses, and lower barriers, since they pay no tax, no licensing and exploit all forms of regulation in the absence of sincere monitoring, policing and enforcement against them.
"It is a vicious cycle: failing to deal with crime causes loss from theft. Across the country, legalization without enforcement against illegal operators, only gives criminals another edge. The outcome is predictable: legal revenue collapses, tax income shrinks, and criminals walk away with hundreds of millions. If states want to make the money they should, enforcement against crime must come first and always - to reduce and remove illegal gambling's appeal and availability."
About the Report:
CFG State Supplement #1 analyzes online sports-betting and online casino activity across all 50 states, comparing consumer engagement across legal and illegal sectors.
For further information and to access the full USA National 2024 and CFG State Supplement #1 please contact:
General Contacts and Press:
info@yieldsec.com
Head of Press: Yasmine Scott
yasmine.scott@yieldsec.com
About The Campaign for Fairer Gambling (CFG): The Campaign for Fairer Gambling (CFG) exists to advance a politically bipartisan and scientifically evidenced agenda of gambling reform. CFG will be active across America because the nationwide debate over gambling needs more balance and trustworthy data. For more information, visit fairergambling.com or follow @fairergambling on X.
https://www.fairergambling.com
About Yield Sec: Yield Sec, short for yield security, is a technical intelligence platform monitoring all audience activity across gambling, streaming, crypto and consumer goods to see the total online marketplace - both legal and illegal. Yield Sec delivers analysis, actions and recommendations to ensure online stakeholders make the money they should - and are not stolen from by crime.
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