How Crypto Boosts America’s $67 Billion Shadow Gambling Industry

Key Points

1. In 2024, $67.1 billion (74%) of the $90.1 billion American online gambling market flowed through illegal channels, growing 64% year-over-year compared to 36% growth for legal operators.

2. California and Texas, with no legal online gambling, have 100% illegal market shares worth $5.5 billion and $4.5 billion respectively, while even states with legal gambling like Ohio see illegal operators dominating 85% of the market.

3. Crypto casinos, such as Stake, account for a significant portion of illegal gambling, with Stake alone processing up to 4% of all bitcoin transactions globally.

4. Illegal gambling operators use advanced technology, including counter-terrorism tools, to track user behavior and maximize profits, often targeting vulnerable groups like minors and welfare recipients.

5. Regulatory efforts are inconsistent, with some states and countries like the UK taking action against illegal operators, but enforcement remains patchy and ineffective against the rapidly growing crypto gambling ecosystem.