The U.S. gambling sector has displayed remarkable financial performance in the first half of 2024, reaching a gross gaming revenue (GGR) of $39.9 billion, according to a recent report exclusively shared with iGB by Yield Sec. Notably, $29.1 billion of this amount stemmed from illicit operations spanning from January to June 2024.
Yield Sec, employing advanced predictive analytics, highlighted in its report that the legal sports betting and online gambling platforms generated $10.8 billion in GGR. The report detailed the operations of 892 illegal and 651 affiliate entities promoting unauthorized platforms across the nation.
Expansion and projections for 2024:
Comparatively, in 2023, the entire U.S. market was valued at $40.9 billion in GGR. Current trends suggest that 2024 figures are set to surpass last year’s totals comfortably. The year witnessed the entry of North Carolina and Vermont into the legal gambling scene. Notably, no new U.S. jurisdictions legalized wagering in 2024. North Carolina, the ninth-largest state by population, quickly became the sixth-largest legal betting state in terms of population, amassing $340 million in wagers and $42 million in revenue within its initial five months.
In a report earlier this year, Yield Sec estimated that two-thirds of the Super Bowl wagers in the U.S. were placed on illegal platforms. Yield Sec CEO Ismail Vail emphasized the pressing issue, stating, “The focus needs to be on the $29.1 billion lost to illegal gambling in the first half of 2024 alone. It’s not rocket science. We’ve identified precisely where this loss of revenue is being realised, we just need to redirect it back into the pockets of legal operators so that additional revenue can be taxed and the industry can fulfill promises of fair, safe, and responsible online gambling.”
Yield Sec’s analyses over the years indicate persistent growth in the illegal market, projecting it might escalate to $60 billion in GGR by the end of 2024. The legal market, in comparison, reported $12.3 billion in GGR in 2022 and $16.9 billion in 2023, with an expectation to exceed $20 billion by this year’s end. These estimates align with the American Gaming Association’s (AGA) findings, which recorded $10.62 billion in legal GGR for the first half of 2024.
Predictive insights and future trends:
The influx of major sports events, including the college football season commencing on August 24 and the NFL season starting on September 5, suggests a potential doubling in GGR by year’s end. This period traditionally accounts for approximately 35% of annual U.S. gambling revenue.
Yield Sec utilizes AI to scour the internet for gambling-related data, refining this into actionable market intelligence. With a proven track record, the platform boasted about predicting the 2024 Super Bowl’s GGR with roughly 3% accuracy, underscoring its predictive capabilities.
