New Data Shows State Enforcement Against Illegal Sportsbooks Drives Legal Sports Betting Growth

• Data from GeoComply shows state enforcement against illegal gaming drives measurable growth to the legal, regulated markets
• States that have issued cease-and-desist or taken action against offshore operators have seen growth in active players
• States that have taken no action have not seen similar growth in their legal sports betting markets

Want to grow your state’s legal sports betting market? Take action against the illegally operating offshore markets and watch your market grow like magic!

GeoComply, a leading geolocation company, released new data that shows state enforcement actions against illegal offshore sportsbooks directly drives measurable growth in legal, regulated sports betting markets.

State regulators that have issued cease-and-desist letters, or other enforcement actions, against illegal offshore operators have seen growth in their active players and new accounts.

Measurable Growth in Legal Sports Betting Markets

GeoComply analyzed player engagement and new account growth during August across 10 states with similar populations. Five of these states — Arizona, Louisiana, Massachusetts, Michigan, and Tennessee — have issued cease-and-desist letters or taken other enforcement actions against notable offshore operators. Five other states — Iowa, Indiana, Kentucky, North Carolina, and Virginia — have not.

The results show a clear enforcement impact on legalized sports betting markets for the states that have taken action against illegal operators. Enforcement states average 10% more year-over-year growth in active player during the month of August compared with non enforcement states, according to GeoComply.

Additionally, new account sign ups in states that have issued these actions were 39% higher compared with states that took no actions.

“These findings demonstrate that enforcement works,” said Kip Levin, CEO of GeoComply. “When states crack down on illegal sportsbooks, players migrate to the legal, licensed market, where they’re protected and where their play generates state tax revenue. Consumers often can’t tell the difference between a state-regulated sportsbook and an offshore site, but when regulators take action, it raises awareness and helps guide players to safer, accountable operators.”

Attorneys General Favor Action Against Illegal Operators

On the federal level, a coalition of 50 attorneys general called on the U.S. Department of Justice to take action against illegal offshore gaming platforms.

The coalition, in a letter address to U.S. Attorney General Pam Bondi, urged the Department of Justice to prioritize enforcement efforts targeting unlawful online sports betting and gaming platforms that operate outside of the rules and regulations of U.S. law.

The coalition noted that these illegal operators post significant risks to consumers, particularly younger people and vulnerable populations, and can undermine the integrity of state-regulated gaming markets.

To address concerns, the coalition urged the department of justice to do the following:

• Pursue injunctive relief under the Unlawful Internet Gambling Enforcement Act to block access to illegal websites and associated payment systems
• Seize assets—including servers, domains, and financial proceeds—used in connection with unlawful gaming operations
• Collaborate with state authorities, financial institutions, and payment processors to disrupt the financial infrastructure supporting illegal gambling