TLDR
- Fully regulated U.S. states see offshore gambling drop to about 38%, compared to 79% nationally
- States with both online casino and sports betting retain around 62% of market value domestically
- Betting-only states still lose roughly 74% of gambling value to offshore platforms
- New Jersey and Michigan lead with domestic capture rates above 70%
- No U.S. state has fully eliminated offshore gambling activity, but full regulation cuts it significantly
The United States has been legalizing online gambling state by state for over a decade now. But offshore platforms still control most of the market. New data from Blask’s 2025 U.S. iGaming landscape analysis breaks down exactly how much regulation actually helps.
Across all analyzed U.S. states, the national average offshore share sits at 79%. That means only 21% of online gambling value stays within domestic, regulated markets.
The numbers shift depending on the type of regulation each state has adopted. States that offer both online casino games and sports betting perform far better at keeping money onshore.
Fully Regulated States Lead in Domestic Capture
New Jersey captures about 73% of its online gambling market domestically. Michigan does even better, retaining roughly 75% of its market value within licensed platforms.
On average, fully regulated states keep around 62% of their gambling value domestic. That brings offshore share down to approximately 38%.
These states give players access to the full range of legal options, including slots, table games, and sports betting. That combination appears to be the key factor in pulling users away from unlicensed sites.
The contrast with betting-only states is sharp. States that have legalized sports betting but not online casino games average about 74% offshore share.
New York, the largest state market by consumer expenditure on betting, sees roughly 61% of its value go offshore. Ohio is even more extreme, with 82% flowing to unlicensed platforms.
The reason is straightforward. Players who want slots or table games in these states have no legal option. So they turn to offshore sites to get what they want.
Sports betting legalization alone does not appear to address the broader demand for online gambling. Without casino products, states leave a large portion of the market to unlicensed operators.
Newer Markets Still Playing Catch-Up
Time in the market also matters. Rhode Island, one of the newest fully regulated states, still has more offshore activity than domestic. Its offshore share exceeds 50%.
This suggests that even with the right regulatory framework, it takes time for licensed operators to build trust and product depth. Channelization is not instant.
New Jersey and Michigan have had years to develop their markets. That head start shows in their numbers.
The data paints a clear picture for policymakers. Full-spectrum regulation, covering both casino and sports betting, cuts offshore activity by more than half compared to the national average.
But it does not eliminate it entirely. No U.S. state has reached zero offshore activity.
The Blask analysis frames regulation as a spectrum rather than a switch. Legalization creates the conditions for domestic capture, but total elimination of offshore gambling remains out of reach.
For states still debating their approach, the data suggests that betting-only legalization leaves most of the market untouched. The biggest gains come from offering a complete regulated product suite.
Rhode Island’s early numbers show that new markets need patience. Even with full regulation in place, building domestic market share is a gradual process that depends on operator investment and consumer trust.
