Illegal Gambling Costs Everyone

In December, the American Gaming Association released a study conducted by The Innovation Group, “Sizing the Illegal and Unregulated Gaming Markets in the United States.” Because of the nature of illegal gambling, it has always been difficult estimate the size, but by incorporating the data that is known with educated guesses, the estimates of illegal gambling are as accurate as possible. Illegal gambling is often referred to as the “gray market” because there are loopholes that allow unregulated gaming machines to operate in bars, restaurants, convenience stores, fraternity clubs and other locations. The study includes those unregulated machines along with illegal offshore wagering sites to come up with the final revenue estimates. At right, the chart at the top shows the huge tax dollars that these operations dodge by operating illegally. The bottom chart breaks down the illegal revenue divided by illegal sports betting, illegal iGaming and unregulated machines. To obtain a copy of the report, visit AmericanGaming.org.