Unregulated online gambling generated an estimated US$5.9tn in global wagering value in 2025, according to a new report from Gaming Compliance International (GCI), underlining the scale of betting activity taking place outside national licensing regimes.
This figure represents total handle rather than operator revenue. It covers wagering across unlicensed sports betting, online casino, poker, lottery style products, crypto gambling and prediction style markets. GCI estimated that the total had increased from $5.7tn in 2024.
The report said unregulated operators accounted for 78% of global GGR, although the methodology behind the estimate has not yet been widely published. The scale of the figure will add weight to calls from licensed operators and regulators for stronger action against offshore gambling, payments networks and digital platforms that support unlawful activity.
GCI describes itself as a compliance and monitoring business focused on transaction monitoring, universal KYC and bettor tracking for gambling jurisdictions. Its latest findings come as governments and regulators increasingly frame illegal gambling as a financial, consumer protection and public revenue issue rather than a narrow licensing breach.
The inclusion of prediction markets is likely to attract particular attention, while the rapid growth of crypto gambling has added a further layer of complexity. Digital asset payments can allow operators to reach customers across borders, reduce dependence on conventional banking channels and make enforcement more difficult for national regulators. The report said this activity has created an additional layer of unregulated gambling that is often not captured by conventional market assessments.
For regulated operators, the issue is commercial as well as regulatory. Licensed betting and gaming companies face taxes, responsible gambling obligations, affordability checks, advertising rules and licensing costs. Offshore operators can often offer fewer restrictions, higher bonuses and broader product access, creating pressure in markets where channelisation remains weak.
The report also lands amid wider concern over illegal gambling in Asia, Europe and North America. Regulators have increasingly targeted payment providers, affiliates, search engines and social media platforms, arguing that illegal gambling cannot be tackled solely by issuing enforcement notices to offshore operators.
The central question is whether governments can make legal gambling more attractive than the illegal alternative while still maintaining consumer protection standards. This balance is becoming harder as unregulated operators use digital payments, social media marketing and cross-border infrastructure to reach customers at scale.
For the regulated industry, the illegal and unregulated market is no longer a fringe competitor. It is now a parallel digital gambling economy, and one that many regulators are still trying to measure before they can effectively contain.
