Unlicensed Gambling Now Dominates US Online Market: What Video Poker Players Should Know

Unlicensed online gambling generated an estimated $97.4 billion in US gross gaming revenue in 2025, according to new research by Gaming Compliance International (GCI) commissioned by the Campaign for Fairer Gambling. That figure gives unlicensed operators a claimed 77% share of the US online gambling market, up from the 74% share GCI estimated for 2024.

The report does not break out video poker from other games, but video poker is a common title on online casino sites, including platforms that operate outside state licensing. For players, the report is not a market curiosity. It is a reminder that a large share of the US online gambling market sits outside the same licensing, oversight, and dispute-resolution systems that protect players on regulated sites.

Licensed operators generated $28.3 billion in 2025, compared with $23 billion in 2024. GCI estimates unlicensed GGR rose 45.2%, nearly twice as fast, helping push combined online gambling GGR to $125.6 billion, up 39.4% from $90.1 billion in the prior year.

Unlicensed share widened in 2025

GCI argues that legal sports betting and online casino expansion alone has not redirected enough consumers toward licensed operators. Derek Webb, who funds the Campaign for Fairer Gambling, said in the report: “The legal sector uses the presence of the illicit sector to demand legalisation, then asks for low tax and regulation to compete against the illicit sector. Taking action against bad actors in the illicit sector is the solution and must be the priority for all stakeholders.”

The table below summarizes the key figures from the report.

State-by-state Loss Ratio data

GCI uses a Loss Ratio that compares online gambling GGR per person with income per person. States offering both regulated sports betting and online casino gaming averaged 1.38% in 2025. Sports betting-only states averaged 0.99%, while states offering neither product averaged 0.44%.

The report says unlicensed activity remained present under every regulatory model. Sports betting-only states recorded the highest average unlicensed Loss Ratio at 0.80%. States with both sports betting and online casino gaming averaged 0.67%, while states with neither product stood at 0.44%.

Louisiana recorded the highest unlicensed gambling expenditure relative to income. West Virginia posted a total Loss Ratio of 1.57%, including 0.87 percentage points attributed to unlicensed gambling. California, which regulates neither online casino gaming nor sports betting, recorded 0.43%, all attributed by GCI to unlicensed activity.

What this means for video poker players

Video poker is not broken out separately in the report, but it is a standard game on many online casino platforms, including unlicensed ones. For players, the practical concern is not whether those sites look polished. It is whether a player has any meaningful protection if a site withholds winnings, changes pay tables, or closes without explanation.

Licensed operators in the US answer to state regulators. They are expected to follow rules on game fairness, payout claims, and responsible gambling tools. Unlicensed sites may not offer the same safeguards. Video poker players should also pay close attention to pay tables and terms, because those details can change without the same scrutiny on unregulated platforms.

Who stands behind the report

The study was commissioned and funded by the Campaign for Fairer Gambling, founded by Derek Webb. That means the figures are not an independent government audit. The report’s overall direction is consistent with earlier GCI work, but the exact size of the unlicensed market depends on methodology.

GCI estimates have also faced questions over previous assessments of unregulated gambling markets, according to the source article. That does not make the issue less real. It does mean the $97.4 billion figure should be treated as an estimate, not as audited revenue.

What remains unclear

The report does not break out how much unlicensed activity comes from slots, table games, poker, or video poker. It also does not provide full public access to the detailed underlying data and methodology.

Because the study was funded by a campaign group with an obvious interest in regulation, readers should be careful about treating the exact numbers as fact. The key point for players is simpler: a large share of the US online gambling market is estimated to operate outside state licensing, and video poker players should know which side of that line their chosen site sits on.

How to check a legitimate site

Before depositing, video poker players can check whether a site appears on the license list published by their state gaming regulator. Casino and sports betting apps that do not appear on those lists are not regulated in that state. Players should also read the site’s withdrawal terms, pay table disclosures, and responsible gambling policies.

If the report’s 77% estimate is close to accurate, most online gambling activity in the US is now happening on unlicensed platforms. That makes the pre-deposit check more important than ever for players who care about fair play and accountable payouts.

Source: https://igaming.org/casino-news/unlicensed-gambling-takes-77-percent-of-us-online-market-in-2025-report-says/