Gambling in the USA
New AGA Report Shows Americans Gamble More Than Half a Trillion Dollars Illegally Each Year
Americans gamble an estimated $511 billion each year with illegal and unregulated sportsbooks, iGaming websites and so-called “skill games,” according to a new report from the American Gaming Association.
This illegal wagering robs state governments of $13.3 billion in tax revenue annually, nearly $2.5 billion more than legal operators generated in 2021 ($11.7 billion). It also costs the legal gaming industry $44.2 billion in annual revenue, or nearly half of the $92 billion in combined commercial and tribal revenue in 2021.
“Illegal and unregulated gambling is a scourge on our society, taking advantage of vulnerable consumers, skirting regulatory obligations and robbing communities of critical tax revenue for infrastructure, education and more,” said AGA President and CEO Bill Miller. “We have always known that the illegal and unregulated market is expansive, but this report illuminates just how pervasive it is.”
Sports Betting Findings
AGA’s report estimates that Americans wager $63.8 billion with illegal bookies and offshore sites at a cost of $3.8 billion in gaming revenue and $700 million in state taxes. With Americans projected to place $100 billion in legal sports bets this year, these findings imply that illegal sportsbook operators are capturing nearly 40 percent of the U.S. sports betting market.
While the numbers are significant, they also demonstrate Americans’ movement to the regulated market with legal sports betting’s expansion to 36 states and the District of Columbia.
The report also found that 49 percent of past-year sports bettors have placed a bet with an illegal operator. Previous AGA research shows that more than half of Americans that bet on sports with illegal operators believe they are wagering legally.
iGaming Findings
Americans wager an estimated $337.9 billion with illegal iGaming websites, with a loss of $3.9 billion in state tax revenue. With $13.5 billion in estimated revenue, the illegal iGaming market in the U.S. is nearly three times the size of the legal U.S. iGaming market, estimated to be $5 billion in 2022.
With iGaming only legal in six states, nearly half of Americans (48%) that have played online slots or table games in the past year have played with illegal online casinos.
Unregulated “Skill Machine” Findings
Unregulated gaming machines also continue to proliferate, with an estimated 580,651 unregulated machines in the U.S. With 870,000 regulated machines in casinos and slot routes, that means 40 percent of all gaming machines in the U.S. are unlicensed.
Based on state regulatory data for similar machines, the operator win percentage on unregulated gambling machines is significantly higher than legal casino slot machines. During the past 12 months, slot machines in Nevada have a 7.16 percent win rate, compared to a nearly 25 percent estimated win rate for unregulated machines—demonstrating how unregulated machines take advantage of customers.
“All stakeholders—policymakers, law enforcement, regulators, legal businesses—must work together to root out the illegal and unregulated gambling market. This is a fight we’re in for the long haul to protect consumers, support communities and defend the law-abiding members of our industry.”
Methodology
The study was conducted by The Innovation Group on behalf of the American Gaming Association and is based largely on a survey of 5,284 U.S adults, examining their past-year gambling behaviors with both legal and illegal operators as well as their observations of unregulated gaming machines. It also incorporates publicly available data on the size of the legal U.S. gaming market and certain state gaming machine markets.
Background
- Commercial or tribal casino gaming is legal in 36 states, iGaming is legal in six states, and sports betting is legal is 36 states and Washington, D.C.
- AGA’s State of Play Map provides a state-by-state look at legal, regulated gaming in the U.S.
- StopIllegalGambling.com provides additional resources for consumers, industry stakeholders and media to raise awareness on the importance of eliminating illegal gambling and bolster efforts to combat illegal operators.
Gambling in the USA
California Gambling Control Commission Advances Licensing, Tribal Partnerships, and Responsible Gaming Initiatives
Sacramento, CA — In a meeting packed with regulatory updates and licensing decisions, the California Gambling Control Commission (CGCC) convened on April 24 to advance numerous agenda items impacting the state’s gambling landscape—from tribal gaming approvals to responsible gambling programs and operator renewals.
Problem Gambling & Public Health Takes the Stage
The Commission meeting opened with a presentation by Sosha Marasigan-Quintero from the California Department of Public Health, offering an overview and update on the California Problem Gambling Treatment Services Program. While no specific staff recommendations were provided, the update underscores California’s continued focus on behavioral health in gambling.
Tribal Revenue Distribution Approved
The Commission approved the quarterly distribution of payments from the Revenue Sharing Trust Fund to eligible recipient Indian Tribes. This routine, yet vital, procedure ensures the equitable distribution of revenue to support tribal sovereignty and infrastructure across the state.
Cardroom Licensing: Approvals and Extensions
Among key licensing matters:
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500 Club Casino (K & M Casinos, Inc.) received both initial and renewal owner-type license approvals through January 2027.
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Casino Chico, Hollywood Park Casino, and Lake Bowl Cardroom were granted renewals and short-term extensions, some with conditions such as improving record-keeping systems or ensuring regulatory compliance ahead of reopening.
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Hotel Del Rio & Casino was granted a 60-day extension under several strict conditions, including updated safety plans and the restatement of commingled financial records.
Key Employee Licensing Actions
The Commission approved several initial and renewal key employee licenses. Notably:
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Jeffrey Thompson was approved with a condition prohibiting involvement in illegal gambling activities.
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Kevin Lee and George Rahme received 120-day extensions for renewal processing.
Third-Party Proposition Player Services Under Scrutiny
The Commission approved both initial and temporary licenses for Fortune Players Group, Inc., with a lengthy list of conditions tied to the conduct of a former associate, Rene Medina. These conditions highlight the Commission’s ongoing vigilance in monitoring third-party player services and maintaining compliance across operations.
Progressive Gaming, LLC was also approved for an initial license, further expanding third-party service provider capacity.
Gaming Resource Suppliers & Tribal Approvals
Initial suitability findings for several prominent tribal gaming resource suppliers were approved, including:
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HCAL, LLC
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JCM Global
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Konami Gaming, Inc.
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PDS Gaming, LLC
Dozens of tribal gaming employees were also approved for key positions at tribal casinos across California, reflecting the Commission’s continued support of tribal gaming operations and the necessary workforce to support it.
Notable Withdrawals and Denials
In two notable cases, requests to withdraw license applications—Josephine Hoang and Jesus Bojorquez—were denied, signaling the Commission’s increased scrutiny and emphasis on applicant accountability.
A Broader Look Ahead
With regulatory reform on the horizon and ongoing efforts to promote responsible gaming, the April 2025 CGCC meeting showcased a mix of routine license management and deeper engagement with emerging compliance issues. As the Commission prepares for the next quarter, the groundwork laid in this session will likely influence policy developments and enforcement trends across California’s gambling sector.
The renowned Mexican operator Logrand has installed Zitro’s new CONCEPT cabinets and a selection of its latest games at the New York Casino in Monterrey.
Building on its global success, the CONCEPT cabinet line stands out for its Magic Lighting, immersing players in a synchronized light display, resulting in a unique sensory experience. Furthermore, the cabinet’s large Screen Deck blends comfort with intuitive functionality, optimizing the experience for players and operational teams.
The installation of the CONCEPT cabinets is complemented by the addition of the medieval-themed multi-game Legendary Sword, in which players can double their prizes through unique mechanics with the help of a magic sword.
On the other hand, Fairyland Quest takes players to an enchanted forest where Magic Mushrooms give access to a different bonus each, while a friendly Fairy will give a special bonus that doubles the playing area.
Juan David Baracaldo, Director of Operations and Product, highlighted: “The addition of Zitro’s CONCEPT cabinets is a great step to continue offering unique and high-quality experiences to our players. The unique combination of technology, spectacular graphics, and the experience these cabinets offer will further elevate our casino’s entertainment offering.”
For his part, Johnny Ortiz Viveiros, founder of Zitro, expressed: “We are very excited to strengthen our partnership with Logrand, a strategic partner that shares our vision of providing exceptional gaming experiences. The new CONCEPT cabinets and games like Legendary Sword and Fairyland Quest are just the beginning of what will transform how players enjoy entertainment.”
Sky River Casino has announced that an Elk Grove resident has won a whopping $511,311 while playing progressive blackjack on March 31, 2025. The Sky River Rewards member hit the big win after playing the table game for less than an hour.
“Our progressive table games and slot machines continue to be really hot here at Sky River Casino. Our players have had an impressive number of life-changing jackpots and our winning streak continues. We look forward to the next big win and welcome adults near and far to visit to explore and enjoy our high-energy atmosphere, lively promotions, exciting gaming, and unparalleled dining experiences,” said Michael J. Facenda, President of Sky River Casino.
The lucky local guest plans to use her winnings to renovate a kitchen and build a house back home.
“Without question, the best part of my job is watching our valued members and guests experience jaw dropping wins like this one. We all share in the incredible excitement that is absolutely contagious and can be felt throughout the casino,” said Charleen Ripley, VP of Casino Operations for Sky River Casino.
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