Global Gambling Black Market Surges to $5.9 Trillion, Industry Report Warns

The global online gambling black market reached an estimated $5.9 trillion in volume during 2025, according to a new industry report that is sending shockwaves across the regulated gaming sector.

The figures, published by Gaming Compliance International in its latest “Online Gaming 2025: Global” report, suggest offshore and unlicensed operators now dominate a significant portion of worldwide online betting activity. The study estimates that unregulated platforms account for approximately 78% of global online gaming gross gaming revenue (GGR).

According to the report, the illegal market grew by roughly 4% year-over-year from 2024’s estimated $5.7 trillion handle, continuing a rapid upward trend driven by crypto gambling, offshore sportsbooks, prediction markets, and unlicensed casino platforms.

Industry analysts say the scale of the underground gambling economy highlights the growing challenge regulators face as consumer behavior increasingly shifts toward borderless digital betting products that often operate outside local licensing frameworks.

The report introduced what it described as a fragmented “three-layer marketplace,” separating the industry into regulated, unregulated, and “unacknowledged” gambling sectors. The latter category reportedly includes social casinos, skin betting, sweepstakes models, TikTok-style betting contests, and prediction market platforms that blur the lines between gaming, investing, and gambling.

Executives within the gaming industry have raised concerns that many consumers struggle to distinguish between licensed operators and illegal alternatives, particularly as unregulated platforms continue using aggressive digital marketing tactics and cryptocurrency payment systems to bypass restrictions.

The report also warned that illegal sports streaming sites are increasingly being used as gateways for offshore betting advertisements, particularly in major sports markets across Europe and North America.

Regulators globally have intensified enforcement efforts over the past two years, but many jurisdictions continue to battle rising offshore activity. In markets such as Sweden and the UK, industry groups have repeatedly warned that black-market operators are gaining traction despite tighter local regulations.