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CFG Report Highlights Concerns Over US Offshore Gambling and Consumer Harm
A new study from the Campaign for Fairer Gambling (CFG) raises serious concerns about the growth of unlicensed gambling in the US. While states legalize online gambling, unregulated offshore operators thrive by offering bigger bonuses, putting consumers at risk and undermining regulated markets. The report calls for urgent regulatory reform.
The Campaign for Fairer Gambling (CFG), in partnership with market intelligence platform Yield Sec, has released a concerning new report on the state of online gambling in the US. The report emphasizes the structural weaknesses in the current regulatory approach, highlighting the dangers of unlicensed operators and the increase in consumer losses, especially in states that have legalized online gambling but fail to adequately tackle the unlicensed sector.
According to CFG's findings, consumer harm is notably higher in states where online gambling has been partially or fully legalized. The report categorizes US states into three groups based on their online gambling regulations: states with no legal online gambling, those allowing only online sports betting, and those permitting both online sports betting and online casino games. The analysis reveals that states without legal gambling see far lower losses, while states legalizing both sports betting and online casino games experience the highest per capita losses.
The CFG’s report also highlights a troubling trend: 74% of online gambling revenue in the US is flowing to unlicensed operators. These operators can offer more attractive bonuses and fewer restrictions by bypassing compliance costs like taxes and licensing fees, which gives them a significant advantage over licensed operators. This leads to a situation where the unlicensed market grows alongside the regulated one, increasing consumer harm and undermining the overall system.
CFG argues that certain state-level regulatory frameworks are failing to regulate the entire online gambling market. In particular, states like New York and Florida, where only sports betting is legal, have seen rising gambling losses. Meanwhile, states like Michigan and New Jersey, which have legalized both sports betting and online casino games, face the greatest financial impact.
The report concludes with a call for a complete overhaul of the regulatory approach, prioritizing both legalization and strong enforcement against unlicensed gambling operators. Without stronger measures, the growth of legal gambling will continue to fuel the unlicensed sector, ultimately putting consumers at greater financial risk.
