AGA: Illegal gambling operators continue to ‘utilize legal loopholes’ while iGaming growth creates fear of ‘cannibalization’ within markets

The Association spoke on the current gaming scene as part of its State of the Industry webinar on February 19, covering verticals such as sports betting, sweepstakes and iGaming.

The American Gaming Association (AGA) held its State of the Industry webinar on February 19, speaking on topics such as the growth of iGaming, illegal operations from sweepstakes casinos and offshore sports betting operators and how the Association can work with the new US administration to keep gaming at the forefront. 

The AGA reported the gaming industry’s financial results throughout 2024 prior to the webinar, including a total gross gaming revenue (GGR) of $71.9bn, equating to a 7.5% increase year-over-year, while early expectations from Tribal gaming would increase the figure to $115m. While AGA President and CEO Bill Miller stated that the results are “further evidence of public support” for the gaming industry, legal gaming success makes the industry a “target” for illegal operators. 

“These illegal operations exploit consumer confusion and threaten to undermine the public trust we have built over many years,” Miller said. 

Miller cited how operators conducting illegal business within the US target vulnerable communities and “exploit legal loopholes” that are currently in place for some states. The AGA reported that over $400bn worth of illegal bets were taken throughout 2024, draining more than $4bn in potential tax revenue from communities that would benefit from such funds. Miller stated that these “unregulated actors,” such as sweepstakes casinos, can cost the US nearly $17.3bn annually in estimated revenue, and that operators continue to “undermine industry integrity.”

The AGA also spoke on the recent changes in the US political scene, with President Donald Trump having started his second term in January. Miller stated that while the AGA has taken note of a “closely divided congress,” the Association has optimism for working with President Trump’s administration, especially after his surprise visit to Circa Resort & Casino in Las Vegas shortly following his inauguration. Miller also referenced the federal relief provided for the gaming industry during the Covid-19 pandemic, which was authorized by Trump during his first term as President. 

Good to know: The AGA estimated that $1.39bn would be wagered on Super Bowl LIX, which took place on February 9 between the Kansas City Chiefs and Philadelphia Eagles

Despite the continued growth seen in iGaming, Miller also spoke on a sense of “cannibalization” that is growing within the market, as online revenue represented 30% of the total GGR during 2024, a significant increase from the 15% reported during 2021 which Miller referenced during the webinar. 

He stated that it is up to stakeholders to determine whether certain states will enter the iGaming scene, as many still have an “appreciation” for the effects iGaming has on traditional brick-and-mortar casinos. Miller also highlighted that while numerous states have legalized some form of sports betting, only a handful have begun the process of offering further elements of iGaming to its residents, in fear of how it could negatively affect Land-based properties. 

AGA SVP of Government Relations Chris Cylke spoke on the future of sports betting in the US, highlighting the entrances of North Carolina and Vermont during 2024. 

While Cylke was unable to confirm which states the AGA is expecting to launch sports betting in the near future, he stated the AGA can already “bank” on Missouri joining the scene in 2025 and believes the state is “ahead of schedule” on beginning operations. Cylke also stated that there is a “reason as to why certain states are still outstanding,” but that the AGA is hopeful that as more successful examples come to fruition, the more states will follow with legalized sports betting. 

Kirk Geller

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