Underdogs in the Game: Offshore Betting Market Booming
Doubled in Size: The Shadowy World of Unlawful Sports Wagering in America
Despite legal sports betting being available in 38 U.S. states, the offshore betting market is twice as big, according to a new study by Blask and Next.Io. That's right, double the financial value of legal books.
This exciting revelation comes from a survey that used data points like search interest and engagement to compare the offshore market's size and worth to the regulated one. While the U.S. regulated sports betting market might reach a 2024 handle of nearly $150 billion, the study projects the offshore market could generate a staggering $300 billion.
Stepping into the nitty-gritty, the Blask and Next.Io survey surveyed California and Texas—populous states without legal sports betting—as well as those with regulated sportsbooks. In regulated states like Florida, the most populous U.S. state with a legal sportsbook, offshore operators command up to 80% of the market. Intriguingly, five of the top ten leading US betting brands are offshore operators.
Leading the pack among these covert giants is the Curacao-based iGaming titan, Bovada. Even in Florida, Bovada boasts far superior bettor interest than Hard Rock Bet, the state's only legal sportsbook. Shockingly, unregulated operators are part of the top five most popular sportsbooks in regulated New York, Ohio, Massachusetts, and Illinois.
Looking for a cure for this offshore dominance? A potential solution might be states championing full legalization of iGaming, offering both digital casino and sports betting. The study shows a less substantial presence of illegal operators in major states like New Jersey, Pennsylvania, Michigan, and West Virginia where both iGaming verticals are legal.
Digging Deeper: Offshore, Regulated, and The Gray Area
- Global Sports Betting and Lottery Industry: At a whopping $329 billion, the global sports betting and lottery industry is a mammoth market[4]. Although specific figures for offshore sports betting operators are scarce, they are a significant part of this market.
- US Online Gambling Market: The U.S. online gambling market, including sports betting, is forecast to climb to $54.8 billion by 2029, registering a CAGR of 11.6%[3]. The total sports betting revenue in the U.S. was $11.04 billion in 2023[4].
- Offshore Sports Betting Operators: Despite the growth of regulated sports betting, offshore operators linger, especially among the uninformed public—70% don't realize they're gambling on offshore sites[1]. Offshore operators like Bovada, BetOnline, and BetUS provide attractive bonuses and expansive sports markets, making them alluring to U.S. bettors[2][5].
- Regulated US Sports Betting Market: The reputable operators in the regulated market include DraftKings, which reigned as the most popular sports betting website in the U.S. as of July 2023[4]. However, regulated operators endure stricter regulations and higher operational costs compared to their offshore counterparts.
Offshore sports betting operators remain key players in the U.S. market due to their competitive offerings and reduced operational costs, despite the growing popularity and legal compliance of regulated U.S. sports betting operators. However, exact market share figures for offshore operators versus regulated ones remain elusive.
- Offshore betting market, twice as large as the legal U.S. one, has a financial value that is double that of legal sportsbooks.
- Despite projections of the U.S. regulated sports betting market reaching nearly $150 billion by 2024, the offshore market could generate an astounding $300 billion.
- In Florida, a regulated state with a legal sportsbook, offshore operators command up to 80% of the market, and five of the top ten leading U.S. betting brands are offshore operators.
- In states where both digital casino and sports betting are legal, there is a less substantial presence of illegal operators, such as New Jersey, Pennsylvania, Michigan, and West Virginia.
