AGA Analysis Finds US Unregulated Gambling Market Up 22% Since 2022

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Edward Scimia

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Last Updated 9th Jul 2026, 05:33 PM

AGA Analysis Finds US Unregulated Gambling Market Up 22% Since 2022

The AGA's analysis showed that machines in bars, restaurants, and other retail locations with unregulated machines pulled in the most revenue. (Photo: David Kilpatrick / Alamy)

The American Gaming Association (AGA) published a report on Aug. 13 finding that Americans wager approximately $673.6 billion each year with illegal and unregulated gambling operators.

That figure is up 22 percent since the last time the AGA conducted similar research in 2022.

Online Casinos, Unregulated Machines Among Biggest AGA Concerns

According to the AGA’s figures, growth in both the legal casino sitesf and unregulated gaming markets has kept the proportion of money wagered with illegal operators steady, accounting for 31.9 percent of the total gaming market in the United States.

The AGA’s estimates suggest that unregulated operators collect about $53.9 billion in revenue each year, a figure that would have added $15.3 billion in taxes to state coffers if regulated.

“Illegal gambling operators are thriving at the expense of American consumers, siphoning billions in tax revenue from state governments, and undercutting the efforts of the legal market,” AGA President and CEO Bill Miller said. “It’s time for a national crackdown on the pervasive illegal market that is draining state coffers and putting people at risk.”

The study found that the largest amount of unregulated betting came from online casinos, which are collecting an estimated handle of $466.2 billion annually and making $18.6 billion in revenue. However, it was unregulated machines found in bars, restaurants, and other retail locations that collected the most estimated revenue, pulling in $30.3 billion on $123.4 billion in estimated handle.

According to the AGA, so-called skill games and other unregulated machines have proliferated across the United States, with an estimated 625,316 such machines now present in the country. The study also found that nearly half of all players at iGaming casinos use both legal and illegal sites, though illegal operators hold a smaller market share than they did in the 2022 study.

The AGA reported more success for regulated outlets when it comes to sports betting. According to the report, illegal sportsbooks now represent about 24 percent of the total US market – down from 36 percent in 2022 – and only one in ten sports bettors exclusively wagers with illegal sources.

AGA Joins Attorneys General in Calling for Crackdown

The AGA report comes just days after a bipartisan coalition of 50 attorneys general from states and territories signed a letter urging the Department of Justice to crack down on illegal gambling sites. While that letter focused mostly on major offshore operators, it still aligns with calls from the AGA in recent years asking for a broader crackdown on unregulated gaming.

That crackdown includes asking states to crack down on sweepstakes casinos, sites using a dual-currency format in an effort to conform with sweepstakes rules rather than be classified as gambling operations, as well as casino apps that are not regulated. While many states have taken steps to explicitly outlaw sweepstakes casinos, they are still available in most parts of the country.

“These bad actors operate in the shadows with zero consumer protections, no responsible gaming obligations, and no economic return to the communities they exploit,” Miller said in his statement, echoing the language of the attorneys general. “Combating them requires not only stronger US enforcement, but also continuing to work closely with our international partners to shut down offshore operators and hold them accountable.”

The Innovation Group conducted the study for the AGA, surveying 2,454 US adults to gather information on gambling behaviors. 

Meet The Author

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Edward Scimia
Edward Scimia
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Ed Scimia is an experienced writer who has been covering the gaming industry since 2008. He graduated from Syracuse University in 2003 with degrees in Magazine Journalism and Political Science. As a writer, Ed has worked for About.com, Gambling.com, and Covers.com, among other sites. He has also authored multiple books and enjoys curling competitively, which has led to him creating curling-related content for his YouTube channel, "Chess on Ice."

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