Booming Offshore Betting Outpaces Regulated Market
Unlawful U.S. Sports Betting Sector doubles the extent of its Legal Counterpart
In contrast to the legal sports betting market available in 38 states across the U.S., a new study indicates the offshore betting market is twice as substantial. The research conducted by Blask and Next.Io suggests that offshore sites hold roughly double the reach of the regulated market and hold approximately twice the financial value of legal books.
While the regulated U.S. sports betting market is projected to reach a handle of $149.25 billion by 2025, the study posits the offshore market could have generated $300 billion.
Uncovering the Details
The Blask and Next.Io survey ventured into California and Texas, two states with a combined population of 65 million residents and lacking legal sports betting. In regulated states, however, offshore sportsbooks remain a dominant force. For example, in Florida, the most populous U.S. state with a legal sportsbook, unregulated operators claim around 80% of the market.
Interestingly, the study revealed that five of the top ten leading U.S. betting brands are actually offshore operators. Bovada, the market-leading unregulated operator based in Curacao, garnered more bettor interest than Hard Rock Bet, the sole regulated sportsbook in Florida.
More striking, at least one unregulated operator appeared among the top five most popular sportsbooks in regulated states like New York, Ohio, Massachusetts, and Illinois.
Online Casinos: A Possible Solution?
The study found that offshore operators held less sway in states that fully legalized iGaming, offering both digital casino and sports betting options. In four major states with legalized iGaming verticals, no illegal operator figure among the top five most popular brands in New Jersey, Pennsylvania, Michigan, and West Virginia.
On the Offshore Betting Market:
Offshore betting sites upstage legal U.S. options in various aspects, offering better odds, a wider array of sports, and more betting markets. Operating outside U.S. regulatory frameworks, they cater to bettors across the nation regardless of local restrictions.
Regulated U.S. Sports Betting Market:
The US sports betting market is part of the larger North American gambling market, which is projected to grow to $149.25 billion by 2025. Despite growth, it continues to navigate varying regulatory environments across different states.
- In states without legal sports betting, such as California and Texas, the offshore sportsbooks maintain a significant presence, even dominating some markets, like Florida with 80% market share.
- Interestingly, five of the top ten leading U.S. sports-betting brands are offshore operators, with Bovada, based in Curacao, attracting more bettor interest than regulated sportsbooks like Hard Rock Bet in Florida.
- While offshore betting sites hold sway in states without fully legalized iGaming, none of them figure among the top five most popular brands in states like New Jersey, Pennsylvania, Michigan, and West Virginia that offer both digital casino and sports betting options.
