In 2024, the U.S. Online Gambling Market Hit $90.1 Billion. But There's a Catch.
At first glance, it seems like a celebration for licensed operators. But in reality, it’s a warning sign:
74% of that revenue went to illegal platforms, according to a report by
Yield Sec, commissioned by the
Campaign for Fairer Gambling (CFG).
Unlicensed operators earned
$67.1 billion—a
64% increase over the previous year. In contrast, the legal sector grew by only
36%, even with the launch of iGaming in new states like Rhode Island. This should raise red flags for anyone planning to
buy an online casino script or invest in building a gambling platform.
According to Yield Sec, for every licensed U.S. sportsbook or online casino, there are approximately
10 unlicensed operators. These companies
don’t pay taxes in the U.S. and
bypass licensing procedures, allowing them to offer
larger bonuses and
better odds.
Why Are Illegal Operators Pulling Ahead?
The answer is simple:
they play by different rules—or none at all.
- 88% of American internet users regularly encounter ads for illegal casinos and sportsbooks—through social media, search engines, streaming platforms, and mobile apps.
- Their marketing is aggressive, and their product lineup is broader—from sports betting to elections and even price movement speculation.
- Affiliate programs among illegal operators are six times more active than those of licensed brands, giving them massive exposure.
Anyone looking to
buy an online casino site or build a legitimate brand must understand the importance of
promotion, retention, and
a diverse offering.
Big Events = Big Traps
The
Super Bowl,
March Madness, the
Olympics—illegal platforms use high-profile events as
funnels for user acquisition. A user comes to place a sports bet and ends up in a casino. Then, they start betting on presidential elections.
These kinds of offerings
aren’t available on licensed platforms—which is exactly what makes illegal sites so attractive. So if you're planning to
buy a turnkey online casino, you need to think from day one about how to
legally and effectively compete with the grey market.
What Does This Mean If You’re Launching an Online Casino?
Here are the key takeaways for entrepreneurs:
- Even in heavily regulated markets, it's possible to outperform competitors through smart marketing and bold positioning.
- Affiliate networks are a powerful growth driver, especially when launching a new online product.
- Your content and product lineup must be broader and more flexible than what your competitors offer.
- Legal restrictions aren't always a deterrent—but you’re still responsible for your reputation and security.
- Global events are an opportunity. Use them as traffic drivers.
If you're planning to
order a custom-built online casino, keep this in mind:
surviving in a competitive market requires more than just a platform—you need a clear strategy, from positioning to scaling.
Study more than just success stories—learn from cases of dominance in the grey zone. There are plenty of lessons there, both strategic and tactical.
Do you want to launch your own online casino?
We have been in the Gambling industry since 2004: we know how to start effectively!
