Offshore operators thriving
Even though legal sports betting is available in 38 states across the US now, a new study has revealed the offshore betting market is double its size.
double “the financial value of legal books.”
Using data points including search interest and engagement, the survey by research firm Blask and Next.Io found that offshore sites have twice the scope of the regulated market and double “the financial value of legal books.”
While the regulated US sports betting market posted a 2024 handle of just under $150bn, the study posits the offshore market could have generated $300bn.
Breaking it down
The Blask and Next.Io survey canvassed California and Texas with a combined total of 65 million residents and both states without legal sports betting.
In regulated states, however, offshore sportbooks still have a major market share. An example is Florida, the most US populated state with a legal sportsbook, but where offshore operators account for around 80% of the market.
According to Covers, the research uncovered five of the top ten leading US betting brands were, in fact, offshore operators.
Bovada has far superior bettor interest than Hard Rock Bet
The market leading illegal operator is, perhaps unsurprisingly, Curaçao-based iGaming giant Bovada. Even in Florida, Bovada has far superior bettor interest than Hard Rock Bet, the state’s sole regulated sportsbook.
Framing the challenge in starker terms, the study found at least one unregulated operator sat among the five most-popular sportsbooks in regulated New York, Ohio, Massachusetts, and Illinois.
Online casino the cure?
According to the research, offshore operators have far less prominence in states that have fully legalized iGaming to give them both digital casino and sports betting.
Offshore market participation is less substantial in four major states that have legalized both iGaming verticals. The study reveals no illegal operator among the top five most popular brands in New Jersey, Pennsylvania, Michigan, and West Virginia.