US Gambling Market Hits $39.9bn in H1 2024, with Majority Coming from Illegal Platforms

by Annabelle Stephenson
in $$$, PC
on 28 August 2024

The US gambling market has reached a staggering $39.9bn in gross gaming revenue (GGR) in the first half of 2024, according to a new report by Yield Sec. Out of this total, $29.1bn was generated from illegal platforms between January and June 2024.

Yield Sec, a market intelligence platform that utilizes predictive analytics, focuses solely on sports betting and online gambling in its report. It revealed that legal platforms accounted for $10.8bn in GGR during the same period. Shockingly, the report identified a whopping 892 illegal operators and 651 affiliates promoting such platforms within the US.

Interestingly, Yield Sec’s prediction for 2024 surpasses its estimation for 2023 when the US market was valued at $40.9bn. This impressive growth can be attributed to the entrance of two new states, North Carolina and Vermont, into the live US gambling market in 2024. Although no US jurisdictions legalized wagering this year, North Carolina quickly emerged as a significant player in the legal betting market due to its high population.

North Carolina operators generated $340m in wagers and reported revenues of $42m throughout their first five months of live wagering. Nonetheless, both legal and illegal markets continue to thrive. Yield Sec’s previous reports highlighted the increasing dominance of illegal platforms, revealing that two-thirds of Super Bowl bets in the US were made on such platforms.

Yield Sec CEO, Ismail Vail, underscored the urgency to address the substantial $29.1bn loss to illegal gambling in the first half of 2024 alone. Vail emphasized the importance of redirecting this revenue back into the hands of legal operators, leading to increased taxation and ultimately fulfilling the industry’s commitment to fair, safe, and responsible online gambling.

While the illegal market has exhibited remarkable growth, the legal market has also seen significant progress. Yield Sec estimates that the legal market accounted for $12.3bn in GGR in 2022, $16.9bn in 2023, and $10.8bn in the first half of 2024. Based on these projections, the legal market could surpass $20bn by the end of the year.

These figures align with data from the American Gaming Association (AGA), which records commercial revenue in the legal sports betting and iGaming sectors. In H1 2024 alone, AGA reported a total GGR of $10.62bn, while the figures for 2023 and 2022 were $17.21bn and $12.52bn, respectively.

As we approach the end of the year, it is expected that both the legal and illegal markets will witness substantial growth, potentially more than doubling the current numbers. The upcoming college football season, starting on August 24, and the upcoming NFL season, commencing on September 5, traditionally contribute approximately 35% of the US operator handle in the final four months of the year.

Yield Sec’s meticulous approach, which employs artificial intelligence to collect and refine information on gambling-related keywords, enables them to make accurate predictions for both the legal and illegal markets. By comparing the results with the actual GGR of the 2024 Super Bowl, Yield Sec’s spokesperson claims an accuracy rate of approximately 3%, validating the credibility of their system.

Additional Facts:

1. The Yield Sec report focuses solely on sports betting and online gambling in the US market.
2. North Carolina and Vermont are two new states that entered the live US gambling market in 2024.
3. North Carolina quickly became a significant player in the legal betting market due to its high population.
4. Two-thirds of Super Bowl bets in the US were made on illegal platforms, according to previous reports by Yield Sec.
5. The legal market’s GGR in 2022 was $12.3bn, $16.9bn in 2023, and $10.8bn in the first half of 2024.
6. The American Gaming Association (AGA) records commercial revenue in the legal sports betting and iGaming sectors.

Important Questions and Answers:

1. What is the total gross gaming revenue (GGR) generated in the US gambling market in the first half of 2024?
– The total GGR in the first half of 2024 was $39.9bn, according to Yield Sec’s report.

2. How much of the GGR came from illegal platforms?
– $29.1bn out of the $39.9bn GGR came from illegal platforms.

3. How many illegal operators and affiliates promoting illegal platforms were identified in the US?
– The report identified 892 illegal operators and 651 affiliates promoting illegal platforms within the US.

Key Challenges or Controversies:

1. The challenge of addressing the significant revenue loss to illegal gambling, which amounted to $29.1bn in the first half of 2024 alone.
2. The dominance of illegal platforms in the US gambling market, as highlighted by Yield Sec’s previous reports.
3. Ensuring fair, safe, and responsible online gambling practices and redirecting revenue to legal operators.

Advantages:
– The US gambling market has experienced substantial growth, with impressive GGR figures.
– The entrance of new states into the live gambling market contributes to the market’s expansion.
– Yield Sec’s use of predictive analytics and artificial intelligence enables accurate predictions for both legal and illegal markets.

Disadvantages:
– The substantial presence and growth of illegal gambling platforms pose challenges to the legal market and industry commitment to responsible gambling.
– Revenue loss to illegal gambling impacts taxation and financial benefits that legal operators could receive.
– The challenge of regulating and controlling the illegal gambling market to ensure fair competition and consumer protection.

The source of the article is from the blog macholevante.com