Offshore Sports Betting Revels in its Thriving Domination
The Unlawful USA Sports Betting Market Doubles the Size of the Lawful One
Despite the spread of legal sports betting in 38 states across the US, a new study has exposed the offshore betting market's staggering size. The research by Blask and Next.Io shows offshore sites control twice the market scope and double the financial value of legal sportsbooks.
While the legal US sports betting market is projected to reach a 2024 handle of around $150 billion, the research predicts the offshore market could have generated an impressive $300 billion.
In states offering legal betting, offshore operators retain a substantial market share. For example, in Florida — the most populated state with a legal sportsbook — offshore operators account for approximately 80% of the market.
Interestingly, the survey has found that five of the top ten leading US betting brands are actually offshore operators, with Bovada topping the list as the leading illegal operator. In Florida, Bovada garners far more bettor interest than Hard Rock Bet, the state's only regulated sportsbook.
Moreover, the study reveals that at least one unregulated operator ranks among the top five most popular sportsbooks in regulated states like New York, Ohio, Massachusetts, and Illinois.
States that have fully legalized online casinos in addition to sports betting display reduced engagement with offshore operators. For instance, in New Jersey, Pennsylvania, Michigan, and West Virginia, no illegal operator can be found in the top five most popular brands.
Offshore operators benefit from a broader variety of betting options and fewer regulatory constraints, exploiting the gap where some states have yet to legalize sports betting or have stringent regulations. However, their activities hamper state coffers by avoiding taxes on winnings.
With a substantial revenue stream of around $67.1 billion in 2024, the illegal gambling market driven by offshore operators showcases the offshore market's persisting size compared to the regulated sector. For example, in California, where sports betting is unregulated, illegal gambling amounted to a staggering $5.9 billion in the same year.
To summarize, the offshore betting market perseveres by offering a variety of bets and navigating regulatory hurdles, capturing a substantial portion of the gaming revenue that could potentially bolster the U.S. states' coffers through taxes. The financial value of the offshore market is impressive, with illegal operators generating billions of dollars annually.
Offshore sportsbooks continue to dominate the sports-betting landscape, as their market scope and financial value outstrip those of legal sportsbooks in the United States. In fact, a new study predicts that the offshore market could generate an estimated $300 billion, twice the projected handle of the legal market by 2024. Moreover, offshore operators have managed to retain a significant market share even in states with legal betting, such as Florida, where they account for approximately 80% of the market.
