News Summary
A recent report has revealed a significant increase in illegal gambling across the United States, with Americans wagering over $673 billion annually. This underground market has expanded by 22% since 2022, leading to an estimated $15 billion loss in tax revenue for state and local governments. The American Gaming Association cites factors such as the rise of unregulated iGaming and skill machines contributing to this growth, posing risks to consumers and threatening public services reliant on tax revenues from legal gambling. A coalition of state attorneys general is urging federal action against illegal gambling operations.
Las Vegas, NV – A recent report reveals a troubling surge in illegal gambling activities across the United States, with Americans wagering over $673 billion annually through underground operators. The illegal gambling market has expanded by 22% since 2022, generating nearly $54 billion in revenue for unregulated entities.
State and local governments have been significantly impacted, with an estimated $15 billion in lost tax revenue due to the flourishing illegal gambling sector. This decline in tax contributions poses potential threats to essential public services, including education and emergency response systems, as emphasized by industry analysts.
The American Gaming Association (AGA) highlights three key drivers fueling this growth: the rise of unregulated iGaming, the increase in sports betting, and the proliferation of skill machines. iGaming alone has seen a dramatic increase of nearly 40% since the last report in 2022, indicating a shift towards digital gambling platforms that operate without legal oversight.
Currently, there are more than 625,000 unregulated skill machines in operation throughout the United States, accounting for approximately 40% of all gaming machines in the country. These illegal operations often come with minimal overhead costs, allowing them to avoid the necessary licensing and regulatory expenses that are mandatory for legal establishments.
Despite the growing presence of legal sports betting in nearly 40 states, illegal operators continue to capture about 25% of the U.S. sports betting market. This persistent share underlines the challenges legal operators face, including competition from unregulated services that can offer better odds and payout rates. Legal gambling entities typically must adhere to strict regulatory standards, consumer protection laws, and responsible gaming measures, which illegal operators bypass.
The ramifications of illegal gambling extend far beyond lost revenues and regulatory issues. The absence of consumer protections in illegal gambling environments poses increased risks for participants. Without adequate oversight, players are vulnerable to fraud and other harmful practices commonly found within unregulated markets.
In response to this escalating issue, the AGA is collaborating with law enforcement agencies to combat illegal gambling operations and raise awareness among consumers about the potential dangers of engaging in unregulated gambling activities. This initiative aims not only to protect consumers but also to ensure that tax revenues from legal gaming remain intact for important community services.
One notable example of the risks posed by illegal gambling can be seen in Nevada, where the gaming industry plays a crucial role in generating tax revenues that support public services. The state’s economic stability heavily relies on a well-regulated gaming environment, further highlighting the stakes involved in combating illegal operations.
The report also reflects a concerning lack of urgency regarding illegal gambling at the federal level, a situation that has drawn criticism from various stakeholders. In an effort to increase action against these illegal activities, a coalition of 50 state attorneys general has urged the U.S. Attorney General to take more definitive measures to tackle the problem of illegal gambling.
As the illegal gambling market continues to grow, the effects on local economies and the overall integrity of the gaming industry remain under scrutiny. The substantial loss of tax revenue, combined with the risks posed to consumers, emphasizes the critical need for regulatory reform and increased enforcement to protect public interests and ensure a fair playing field for legal operators.
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Additional Resources
- Vegas Inc: New Report Shows Expansion of Illegal Gaming Market
- Wikipedia: Illegal Gambling
- Esports Insider: Resorts World Las Vegas Fined $10.5M for Illegal Bookmaking
- Google Search: Illegal Gambling
- The Street: Wynn Las Vegas Money Laundering Fine
- Google Scholar: Illegal Gambling
- Nevada Current: Feds Seek Lenient Sentence for Bookie
- Encyclopedia Britannica: Gambling
- CDC Gaming: Nevada Officials Warn of Offshore Gambling’s Impact
- Google News: Illegal Gambling Impact
Author: STAFF HERE LAS VEGAS WRITER
LAS VEGAS STAFF WRITER The LAS VEGAS STAFF WRITER represents the experienced team at HERELasVegas.com, your go-to source for actionable local news and information in Las Vegas, Clark County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Electric Daisy Carnival, World Series of Poker, and Consumer Electronics Show. Our coverage extends to key organizations like the Las Vegas Chamber of Commerce and Three Square Food Bank, plus leading businesses in hospitality and entertainment that power the local economy such as MGM Resorts International, Caesars Entertainment, and Las Vegas Sands. As part of the broader HERE network, we provide comprehensive, credible insights into Nevada's dynamic landscape.
