Illegal gambling nets $9.5 billion from New York, New Jersey, and Minnesota, according to a new report
The Campaign for Fairer Gambling (CFG) has found that $ 9.5 billion from New York, New Jersey, and Minnesota is raked in by illegal gambling.
The CFG and technical intelligence provider Yield Sec (YS) report highlights the massive amounts that black market gambling can accrue.
CFG report finds billions in illegal gambling revenue
The black market for gambling is a huge issue for legislators and regulators. The Gross Gambling Revenue (GGR) across America is $ 40 billion for illegal betting practices.
The world of iGambling, or digital wagering, was the market that the CFG and YS report focused on. New Jersey has the longest-running history with the legal operation of the practice. New York is an online-betting-only state, and Minnesota does not have legal iGaming.
These three states gave the legislators a good idea of the issues surrounding varying levels of legal and historic online gambling practices.
Three key states were observed in the CFG report
In New Jersey, of the total online marketplace GGR, 22% ($ 996 million) is funneled into illegal online sports betting and 16% ($ 719 million) to illegal online casino gaming.
New York has the largest share of its regulated GRR sluiced back into the illegal gambling world. $ 9% of the profits, or $ 3.4 billion, goes back into online casino gaming, and 27% more is illegal online sports betting.
Minnesota is the most curious case, with a staggering unlicensed gaming revenue of over $ 2 billion. Of these ill-gotten gains, 38%, or $ 929 million, goes to illegal online sports betting, and 62%, a massive $ 1.5 billion, is fed into illegal online casino gaming.
CFG founder Derek Webb said of the current rules to curb illegal gambling: “Sector-friendly legislation, regulation, and tax rates have not made much of a dent. Despite wildly different legal regimes, these three states continue to accommodate over 800 illegal operators who operate with zero regard for state law.”
Sportsbooks like Fanatics and FanDuel are the biggest players in regulated gambling in states that allow legal gambling.
However, some states have no laws, like Minnesota and, as we reported earlier in the year, Missouri. Thus, the challenge of balancing legal and illegal regulations is becoming a key battleground for legislators and regulators.
Ismail Vali, founder and CEO of Yield Sec, said of the joint report, “This data and analysis exposes a stark reality: illegal gambling operators are brazenly stealing money from state and federal coffers and legitimate American industry. It’s time for the federal government to end this theft in broad daylight.”
Image: Ideogram.
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