Black Market Gambling in the United States

We’re discussing black market gambling in America, from backroom gaming parlors to illegal sports betting via bookies and unlawful online gambling sites. We speak with Chris Cylke, the Senior Vice President of Government Relations with the AGA, about exactly what constitutes the black market, or illegal gambling, from their perspective.

As more and more jurisdictions within the United States regulate gambling, including online gambling, there could be consequences for operators, players, and affiliates who participate in these activities.

In a recent press release, the AGA stated that black market gambling has become a “scourge” on America which takes advantage of players and escapes regulation. The activity also steals revenue from local jurisdictions that would have come in the form of tax revenue.

It is estimated that Americans gamble well over $300 billion using illegal gambling websites, which would then translate to nearly $4 billion a year in tax revenue for the states. The black market gambling industry in the US is thought to be three times the size of the regulated market.

Currently, there are just six states with legal, regulated casino gaming in the country. Yet, nearly half of all Americans admit to having played at online casinos in the past year. Contributing to the problem are local sports betting bookies, as well as illegal, backroom gambling operations.