A recent report by Yield Sec on behalf of the Campaign for Fairer Gambling (CFG) showed that illegal sports streaming in the U.S. had a role in driving a $67 billion illegal online gambling industry. Over 4.2 billion illegal sports streams were watched in the U.S. during 2024, 82% of which were advertised by illegal gambling sites, according to the report.
Key Takeaways
- CFG report shows that illegal sports streaming in the U.S. drives $67 billion in illegal online gambling in the country.
- During 2024, more than 4.2 billion pirated sports streams were watched in the U.S.
- 82% of illegal sports streams watched contained advertising of illegal gambling sites.
The report says these websites benefit from stolen premium sports content and turn users into cybercrime targets. It outlines how 84% of illegal streams contained malware, spyware, or keyloggers.
The phenomenon is radically affecting American sports leagues and origin broadcasters. Sports bodies and media houses are being financially depleted.
CFG founder Derek Webb called this illicit economy "a dark nexus" of global tech crime and urged the U.S. government to do more with greater urgency. He cited the $67 billion loss as greater than America's trade deficit with all but six countries in 2024.
Legalization without enforcement intensifies consumer losses
CFG published a revised version of its USA National Online Gambling Report 2024 earlier this month. Based on the data, the report suggests that illegal internet gambling produces 74% of America's gross gambling revenue (GGR).
The study finds that when online gambling for sports is legalized but not regulated by states, per capita GGR as a proportion of mean income increases from 0.31% to 0.77%, an increase of 148%. When both online casino and online sports betting are legalized, the proportion rises by 261% to 1.12% of the mean income.
The study creates a top-priority paradox: legalization does not replace the black market. It rejects the hypothesis that regulation alone reduces illicit activity and encourages coordinated enforcement efforts to reduce consumer risk.
Broadcasters face mounting losses through pirated sports streaming
Media advisory firm Enders Analysis has labeled pirated video streaming of sports and pay TV as an evolving and expensive threat, calling it an "industrial scale theft of video services." Based on secret data from broadcasters and examination of internet traffic, Enders estimated a remarkable percentage of premium sports and TV viewing, although figures remained elusive to identify.
Executives say the trend erodes the economic attractiveness of paying for rights to broadcast high-paying sporting events such as Premier League games. Enders contends that one pirated stream of a major live event can have tens of thousands of viewers and is typically intensely amplified through social media sharing.
These pirated streams are redistributed worldwide, far beyond licensed territories, thus eliminating subscriber bases and siphoning funds from legitimate rights owners. Enders deduced that this piracy model, especially for live sport, is growing, which puts a direct strain on broadcasters and streaming services and jeopardizes long-term profitability company-wide.
