A striking report by YieldSec, commissioned by the Campaign for Fairer Gambling (CFG), has shed light on the prevailing patterns of the US betting landscape during the 2024 Super Bowl. The findings underscore a significant growth in the black market with two-thirds of Super Bowl bets in the US deemed illegal, a situation that has raised concerns over the efficacy of the current regulatory mechanisms in the fight against unregulated gambling.
The 2024 Super Bowl saw an astonishing 350 million bets placed, totaling a monetary value of $5.4bn. This was a notable increase from the previous year, with the total bets and betting value experiencing a 22.8% and 20.0% rise, respectively. However, the detailed analysis exposed that among these bets, a staggering 228 million were illegal compared to the 122 million that were legal. The illegal bets generated a whopping $4.0bn, dwarfing the $1.4bn amassed through legal channels. In retrospect, the 2023 Super Bowl tallied 286 million bets, where illegal bets accounted for 186 million, suggesting a growing trend in the black market sector.
The report, with startling clarity, indicates that the illegal betting market boasts a 65% share of the Super Bowl’s betting market, whereas the legal market is left trailing with only a 35% share. YieldSec emphasized that the expected shift from illegal to legal betting is not materializing as rapidly as it should, with many users still preferring illegal platforms for reasons like accessibility and familiarity, only gravitating towards legal options when incentivized with special offers or account opening bonuses – scenarios seen during major events like the Super Bowl.
An increase in illegal Super Bowl bets was pinpointed, surging by 42 million from the previous year’s game, coupled with an additional $546m being wagered through the black market. While the legal betting sphere also experienced growth with 22 million more bets and a $258m increase in betting value, the expansion was relatively modest in comparison.
The prevalence of the illegal betting market is partly attributed to the array of “sports and allied entertainment” bets that illegal operators offer – bets on occurrences like the number of times a celebrity, such as Taylor Swift, would appear on camera. Such quirky and engaging offerings often surpass the conservative variety provided by legal operators, giving illegal platforms an edge.
YieldSec succinctly pointed out that illegal betting venues are strategically positioned where online Super Bowl conversations occur, offering easy transaction opportunities to the American populace. The illegal market’s allure is further bolstered by its more diverse range of betting options, along with more generous bonuses that often capture the attention of prospective bettors.
Ismail Vali, CEO and founder of YieldSec, expressed concern over the persistent influence of illegal gambling, particularly its proximity to the audience during the Super Bowl, emphasizing that it poses a significant challenge in transitioning control from illegal to legal online betting operators. The alarming data from the Super Bowl LVIII further illuminates the critical need for enhanced regulation, enforcement, and a collaborative effort to address the thriving unregulated gambling market.
Vali accentuated that illegal betting tarnishes the integrity of sports, diminishes the gambling industry’s potential revenue and tax contributions, and undermines consumer protection initiatives.
Derek Webb, founder and funder of CFG, pointed out the broken promise of the US legal gambling market, which has not achieved its aim to replace the black market as projected. Webb calls for a re-evaluation and a concerted federal crackdown on illegal gambling operators.
It is pertinent to note that while illegal bookmakers now constitute 19% of traditional betting engagement according to iGB’s Super Bowl analysis, legal bookmakers only channel 45% of the Super Bowl betting traffic. This reinforces the notion that there’s still much work to be done in terms of fostering a regulated market that can overpower and ultimately phase out its illegal counterpart.
