A new Blask report highlights offshore operators’ continued dominance in the US online gambling market, despite years of state-level legalization.
Key Takeaways
* Offshore platforms control 80% of online gambling brands serving American players, capturing two-thirds of the market’s value.
* The US online gambling market generated approximately $79.8 billion in Competitive Earning Baseline (CEB) during 2025, with only $25.2 billion going to regulated domestic operators.
* While legalization shifts consumer spending towards legal options, the reduction of offshore activity is a gradual process.
The US gambling sector maintains stable operator revenue, even as operational challenges persist. A recent analysis from the AI market analytics platform Blask indicates that offshore operators remain a primary force within the US online gambling landscape. The firm’s 2025 assessment of the US online gambling market describes a vast, yet fragmented system operating through distinct state-level regulatory frameworks.
Revenue Flow and Market Share
The US market presents considerable opportunities for operators. The Blask report shows the nation’s online gambling market generated approximately $79.8 billion in Competitive Earning Baseline (CEB) during 2025. This figure positions the USA ahead of other regulated markets, including the United Kingdom, which follows as a distant second. However, this market value reflects a disparity between licensed operators and offshore platforms.
According to Blask estimates, out of roughly 362 operators serving American players, about 290 operate outside established regulatory frameworks. Offshore companies control 80% of the brands active within the US online gambling market. Revenue streams reflect this distribution. Of the $79.8 billion market value identified in the report, approximately $25.2 billion was captured by regulated domestic operators, with the remaining two-thirds directed offshore.
Blask notes that “Seven individual US states now operate at volumes comparable to global top-tier jurisdictions.”
Offshore Presence Varies by State Regulation
Offshore market share varies across different types of states. In jurisdictions that have legalized both online casino games and sports betting services, the offshore market share averages around 38%. However, in states where only sports betting is legal, offshore platforms maintain a 74% market share. Markets that do not permit any form of online gambling result in a 100% offshore presence by default.
Impact of Legalization on Market Dynamics
Despite the continued presence of offshore activity, the Blask study indicates that legalization has an effect on market dynamics. When states implement comprehensive regulatory systems, consumer spending shifts toward legal alternatives. This process, however, unfolds gradually. While no US state has eliminated offshore activity, the data suggests it can be reduced through comprehensive legislation.
Market maturity is a factor in this transition. Newer jurisdictions often encounter challenges with channelization during the initial stages of regulation. Rhode Island, one of the most recent states to legalize online gambling, illustrates this point. While the share of domestic operators is still below that of offshore platforms, the market balance is beginning to adjust.
The Blask report states, “Regulation shifts market balance rather than removing offshore competition entirely, a dynamic that continues to define the structure of the American online gambling industry.”
Licensed brands offer inherent advantages, enabling them to expand their offerings and build consumer trust. Established operators typically invest in product development, responsible gambling tools, and marketing campaigns that highlight the benefits of regulated play. This situation also points to opportunities within the US market, particularly in states that have not yet implemented regulated gambling.
I remember the first time I saw Kai Tak, Hong Kong’s gambling city, I thought I was in a fairy tale. All the lights blinking, the music and the monumental buildings, what 9-year-old wouldn’t think they’ve come to a magical place? It was my father who brought me, dragging me along and when inside I was hit by the smell of frying duck. As soon as I hit 21 I returned to Kai Tak, A bit nervous to see if my mind had embellished the memory, but it hadn’t. Kai Tak was still a magical place. I decided I wanted to spend as much time as I could at this place, so I did.
