US and Canada iGaming Market Dominated by Offshore

The online gambling markets in the United States and Canada continue to expand in size, but recent data shows that a significant portion of activity still takes place outside regulated channels. A new report examining both licensed and offshore segments highlights how value flows across North America, offering a detailed breakdown by state, province, and operator.

According to the findings, the U.S. market reached an estimated $79.8 billion in Competitive Earning Baseline (CEB) in 2025. Canada contributed an additional $9.5 billion, placing it among the largest markets globally. Combined, the two countries represent a market exceeding $90 billion, yet offshore operators account for a majority of that value.

Despite ongoing legalization efforts across multiple jurisdictions, unlicensed platforms continue to dominate. Data indicates that offshore operators control roughly two-thirds of the U.S. market. Around 80% of brands serving American players operate without a local license, reflecting the scale of the unregulated sector.

The report identifies Bovada as the leading operator, outperforming its closest regulated competitor. Its estimated earnings alone “exceed the total market size of any country outside the U.S., UK, and Canada.” Meanwhile, regulated operators such as FanDuel and DraftKings continue to report strong year-over-year growth, but this has not significantly shifted the overall market balance.

The competitive landscape is described as highly fragmented, with hundreds of brands competing across different jurisdictions. At the same time, certain regional markets carry significant weight. Several individual U.S. states generate volumes that would place them among the top global markets if considered independently.

The data shows that regulation can influence how much gambling activity moves into licensed environments, but results vary depending on the model used. States offering both online casino and sports betting achieve stronger domestic capture rates. On average, these fully regulated markets reach around 62% domestic share.

Specific examples highlight this trend. Michigan leads with approximately 75% of activity retained within licensed platforms, while New Jersey captures around 73% after more than a decade of regulation. These results suggest that offering a full range of legal products plays a key role in shifting demand toward regulated operators.

In contrast, jurisdictions that only allow sports betting face structural limitations. In these markets, offshore operators account for an average of around 74% of activity. Without licensed online casino options, players seeking slots and table games continue to turn to unregulated platforms.

New York illustrates this pattern clearly. As the largest U.S. market by CEB, a majority of its gambling activity flows offshore due to the absence of regulated online casino offerings. Similar dynamics appear in other states where only sports betting is permitted.

At a national level, offshore activity remains dominant. Estimates suggest that nearly 79% of total U.S. online gambling value is still captured by unlicensed operators, showing that legalization alone does not eliminate the black market.

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Some of the largest untapped opportunities remain in states that have yet to regulate online gambling. California and Texas together represent nearly $10 billion in market value, currently operating entirely offshore. Regulatory complexity and political factors continue to delay potential market openings in both states.

The report also identifies emerging verticals shaping demand. Prediction markets recorded significant growth, with a reported increase of 256% during 2025. The segment is increasingly consolidating around major platforms, becoming a reference point for real-time sentiment and user engagement.

Online poker remains more stable, with a concentrated competitive structure. A small number of operators account for a large share of total demand, and this balance has shown little change over the past year.

Across North America, the data points to a clear structural pattern. Regulation can reduce offshore activity and shift value toward licensed operators, but the process is gradual and depends heavily on the breadth of legal offerings. Markets that provide a complete product suite show stronger results, while partial frameworks leave space for offshore platforms to maintain their position.

Source:

USA and Canada iGaming landscape 2025: the offshore reality, blask.com, 11th, March 2026