New study reveals scale of black-market betting in U.S.
Published:
Mar 24, 2025
,
04:50 p.m.
ET
Key Points
A new study by Blask may reveal the true scale of black-market betting in the U.S., using artificial intelligence to track offshore and onshore sportsbook activity.
Bovada remains the dominant offshore brand, leading in multiple states, including California (no legal sports betting) and Florida (only 1 legal, regulated sportsbook).
Unregulated states without legal sports betting options show twice the interest in offshore brands, compared to regulated markets.
As always, research like this that uses new methodology may need to be taken with a grain of salt, as it is not peer-reviewed and has known limitations
States are ramping up efforts to crack down on offshore operators to protect consumers and channel betting activity into legal, regulated markets.
————
As legal sports betting expands across the U.S., regulators and industry leaders are still grappling with the persistent influence of offshore sportsbooks. While progress is being made with more states cracking down on them, new findings from Blask and NEXT.io highlight the extent of black-market betting, revealing the challenges of curbing unregulated gambling and the impact it has on the regulated market. By leveraging artificial intelligence, the study provides interesting insights into offshore betting trends, consumer behaviors, and the shifting landscape of online betting in America.
Blask is an AI-driven iGaming market analytics ecosystem that tracks brand engagement and player activity. Blask claims that their data-driven approach can offer a clearer picture of the competitive landscape, helping regulators and industry stakeholders make informed decisions. Blask has formed an alliance with media outlet NEXT.io to improve the quality and dissemination of information to the iGaming industry.
Limitations of the study
Before we dive into the key findings, it is important to first acknowledge (as Blask does themselves) that there are limitations to consider. The report formed some interesting conclusions, but admitted that it has “up to 85% accuracy” for emerging brands and “up to a 95% accuracy” for major brands. As any shopper who likes to hunt for bargains in today’s world knows, the “up to” language can be quite misleading. When a store advertises “up to 50% off” sale items, the large majority of those items usually have discounts of less than 50%.
Additionally, the findings rely heavily on search trends and online engagement, which may not capture the full extent of betting activity conducted through private channels. Plus, offshore operators do not publicly disclose financial reports, making precise revenue estimates challenging. And lastly, regulatory fluctuation means that ongoing legalization of sports betting in various states may cause rapid shifts in the market that are difficult to track in real time.
But even if they should be taken with a TBD-sized grain of salt and viewed as more directional than specific, the study’s findings have been described as jaw-dropping by some. Let’s dive into them…
Key findings from the study
Blask’s research sheds new light on the stunning scale of the black-market betting industry in the United States.
Offshore betting is still massive
The study uses the “Blask Index,” which they say “serves as a market pulse, offering real-time insights into the overall state of the iGaming industry and the shifting interest in specific brands.” Unregulated states with offshore brands recorded Blask Index score of 60.6m, compared to 28.9m in regulated states with onshore ones.
This discrepancy highlights the continued reliance on offshore sportsbooks in areas where legal betting options are unavailable. The lack of state-regulated alternatives drives consumers toward unlicensed operators, exposing them to significant financial and security risks.
Bovada dominates the offshore market
Bovada is the most popular offshore sportsbook across the country, ranking #1 in Florida and maintaining a strong presence in states like California, Ohio, Illinois and Massachusetts. With a presence in both regulated and unregulated states, Bovada exemplifies the challenges regulators face in steering bettors toward legal operators. The platform’s accessibility and broad betting options make it an attractive choice for consumers, despite its unregulated status. It is worth noting that some states have started to crack down on Bovada, issuing cease-and-desist notices and threatening prosecution.
A fragmented but growing market
A total of at least 277 offshore brands operate in the U.S., with over 65% year-over-year growth in states like Iowa, Mississippi, Oklahoma and Indiana. This expansion suggests that while legal sports betting continues to gain traction, black-market operators are also adapting and finding new ways to attract bettors.
To better understand the financial impact of these trends, the study introduces two key metrics: Competitive Earning Baseline (CEB) and Brand’s Accumulated Power (BAP). CEB estimates a brand’s potential market revenue share based on search interest, competitor benchmarks and industry trends. Meanwhile, BAP assesses long-term brand strength by analyzing search interest, engagement levels and competitive positioning.
Notable state-by-state betting trends
California leads all unregulated markets with an estimated $8.5 billion average CEB, followed by Texas at an estimated $5.3 billion. Georgia, Alabama, and Minnesota round out the top five unregulated states.
Pennsylvania leads all regulated markets with $5.7 billion in CEB, followed by New Jersey, Michigan, Connecticut and West Virginia. In these markets, legal operators like FanDuel, DraftKings and BetMGM dominate despite offshore maintaining notable userbases.
Book an appointment with Birches, call 833-483-3838 or email help@bircheshealth.com
Another black-market betting estimate
JMP Securities (part of Citizens) also explored the black market of betting in recent research. They noted that the offshore sports betting market (offshore + bookie) was estimated at $163 billion in handle and $9.8 billion in revenue in 2024. Notably, that figure surpasses the $150 billion wagered through legal platforms in the same period, highlighting the massive size that the black market has maintained. Around 23% of wagers in 2024 were placed through offshore accounts or online bookies, even in states with regulated sports betting, according to JMP.
JMP also reported some movement to legal books from previous offshore customers (around 10% handle decline in post-legalization like Ohio), but saw no inclination to shift to legal options from bettors who use bookies due to advantages such as relative anonymity, betting on credit and higher wagering limits.
The average wager size on each type of platform was also very different:
Bookies: $142
Offshore sportsbooks: $56
Regulated Sportsbooks: $44
What are offshore sportsbooks? How popular are they? Are they legal?
Offshore sportsbooks are betting platforms that operate outside of U.S. jurisdiction, typically based in locations such as Antigua, Costa Rica, Panama, Curaçao and other smaller countries. They can attract American bettors by offering a wider range of betting options and more relaxed deposit requirements.
Despite their popularity, offshore sportsbooks are illegal in the United States because they do not adhere to state gaming regulations. However, they continue to draw in bettors, especially in the 11 states where no legal sports betting options exist (ex: California, Texas, Georgia).
Dangers of offshore sportsbooks
Although offshore sportsbooks may seem appealing due to their promotions and broader betting options, they come with significant risks.
Since these operators are not subject to U.S. laws, bettors have no recourse if their funds are withheld. Many offshore sites have been accused of delaying or outright refusing payouts, making them unreliable for consumers. Additionally, these platforms often lack robust security measures, exposing bettors to potential fraud and data breaches. Without regulatory oversight, offshore sportsbooks can engage in unethical practices such as voiding winning bets or manipulating odds, further disadvantaging players.
