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Unregulated offshore sportsbooks are twice as large as their regulated U.S. equivalents, according to a recent report conducted by research firm Blask and gaming event organizer Next.Io. Based on market activity, engagement, and search trends, the data indicates that offshore websites do better financially than the legal market.
The report calculates that the unregulated market may be worth about $300 billion, although it does not give a precise dollar-for-dollar comparison. In comparison, the legal sports betting market in the United States made slightly less than $150 billion in 2024. Even though the business has grown since the Supreme Court lifted the federal ban on single-game wagering in 2018, these data show how difficult it is still to get bettors to switch to regulated platforms.
In 2022, the American Gaming Association estimated the illegal sports betting market at $64 billion. However, the latest study suggests its true scale could be significantly larger.
According to the survey, even in jurisdictions where sportsbooks are legal, unregulated websites dominate markets, and five of the top ten betting brands in the US are offshore operators.
Since neither state has made sports betting legal, offshore bookies handle almost all of the betting business in California and Texas, which combined have a population of over 65 million.
According to the survey, offshore businesses control around 80% of the market, including in Florida, where Hard Rock is the only authorized sportsbook. Leading offshore operator Bovada is the most well-known brand in Florida and the country.
Some of the biggest states with the most competitive betting follow the pattern. There are at least one offshore book among the top five most well-known brands in New York, Ohio, Massachusetts, and Illinois.
The study notes a weaker offshore presence in states with legal online casino gaming. In New Jersey, Pennsylvania, Michigan, and West Virginia, offshore books fail to rank in the top five most searched brands, suggesting a stronger adoption of regulated platforms for online casino gaming.
As the U.S. betting market continues to evolve, the study highlights the persistent challenge of unregulated competition, despite efforts to expand and regulate the industry.