GeoComply shared data earlier this week showing measurable growth in sports bettors using legal platforms as another NFL season gets underway. The new data highlights that state enforcement actions against illegal offshore sportsbooks are a big reason why.
As part of its study, GeoComply analyzed player engagement and new account growth across 10 states with similar adult populations. Within the past year, Arizona, Louisiana, Massachusetts, Michigan, and Tennessee issued cease-and-desist letters or took other actions against notable offshore operators. The Michigan Gaming Control Board, for example, targeted 15 illegal gambling sites last month. Iowa, Indiana, Kentucky, North Carolina, and Virginia did not issue any letters.
GeoComply results also showed that during August new account signups were 39% higher in enforcement states. Enforcement states recorded, on average, 10% more year-over-year growth in active players during August compared with non-enforcement states. GeoComply’s KYC (Know Your Customer) solution IDComply is helping operators streamline the onboarding process.
Kip Levin, CEO of GeoComply, said the findings demonstrate that enforcement works.
“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,” Levin said. “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.”
Pennsylvania was not mentioned in the GeoComply release. However, in a similar vein, the Pennsylvania Gaming Control Board (PGCB) posted its yearly warning to bettors against playing on illegal offshore sports wagering sites. It coincided with the 2025 NFL season getting underway and with September being Responsible Gaming Education Month. With over 90% of Keystone State sports bets being placed using online gambling platforms, the PGCB highlighted the importance of using one of the 12 regulated sites. Caesars, FanDuel, DraftKings, and BetMGM are among the more popular brands.
Board Executive Director Kevin O’Toole said only sites that have been vetted,
licensed, and regulated for play in Pennsylvania by the board are required to provide essential tools. Legal online PA sports betting apps are listed on the agency website.
“For a gambler to protect themselves, they should be very hesitant to use illegal offshore sites,” O’Toole said. “Only on the Pennsylvania regulated sites can a bettor choose to utilize self-imposed limits to better control their wagering activities.”
The GeoComply report also mentioned the August analysis from the American Gaming Association which found that illegal gambling still accounts for nearly a third of the U.S. market. In terms of volume, Americans wager a total of $673.6 billion annually with illegal and unregulated operators. It generates an estimated $53.9 billion in revenue for offshore betting rings and unregulated machine operators, compared to $115.1 billion in legal revenue.
The push to stop illegal sports betting is getting attention on the federal level. Just last month, a bipartisan coalition of 50 state attorneys general urged the U.S. Department of Justice to crack down on offshore sportsbooks.
“Illegal offshore sportsbooks remain the biggest competitor to the legal market, not other regulated competitors,” Levin said. “A coordinated federal effort would further accelerate the positive shift that has been started by state-level enforcement.”
