New research from Gaming Compliance International (GCI) shows that unregulated online gambling grew to $5.9 trillion in global wagering value in 2025, up from $5.7 trillion in 2024. This figure marks the unregulated sector as the third-largest economic system in the world, trailing only the United States and China, and represents the largest form of cybercrime globally.

The GCI report, Online Gaming 2025: Global, highlights a structural imbalance within online gambling markets. Approximately 78% of gross gaming revenue (GGR) comes from unregulated operators, while regulated platforms account for only 22%. The analysis includes sports betting, casino games, poker, crypto gambling, lotteries, and unregulated prediction markets outside the United States.

Emergence of a Three-Layer Marketplace

GCI introduced a new framework distinguishing three layers in online gambling: regulated, unregulated, and unacknowledged. The unacknowledged layer encompasses platforms replicating gambling mechanics but falling outside traditional definitions, including social casinos, sweepstakes, prediction markets, TikTok contests, skins trading, and other gamified products.

Ismail Vali, GCI president, in a press release described the current market as “a three-sector gaming marketplace in every jurisdiction — regulated, unregulated and unacknowledged — and it is this third layer that is accelerating consumer confusion, unregulated growth, and regulatory complexity at scale.” He added, “The audience does not distinguish between these sectors. They experience one marketplace, where everything is accessible and everything competes equally.”

The unacknowledged layer has expanded rapidly, particularly in crypto-linked gambling and prediction-market platforms. While U.S. prediction markets are regulated by the Commodity Futures Trading Commission (CFTC), similar platforms elsewhere operate without traditional gambling oversight, contributing to rapid unregulated growth.

GCI describes the ecosystem as a “White Noise Marketplace,” where consumers cannot differentiate between licensed, unlicensed, and unclassified gambling products. Matt Holt, GCI CEO, said, “Regulators are not facing a marginal challenge, but a dominant one — the majority of activity is occurring beyond the regulated perimeter. Our role is to provide full transparency across the total marketplace, enabling regulators to act with confidence.”

The dominance of unregulated operators has persisted in part due to advertising advantages. GCI estimates that unregulated gambling ads appeared on more than 80% of illegal sports streams in the U.S. and U.K. during 2024 and 2025. Events such as March Madness and the World Cup contributed to surges in exposure, while emerging markets like Ukraine and Australia are introducing public reporting tools and restrictions to combat illegal promotion.

Market Growth and Future Outlook

The unregulated sector has continued its growth trajectory, rising 12% in 2024 and 4% in 2025. Although the growth rate slowed, the base size added roughly $235 billion annually. Prediction markets, crypto casinos, and unacknowledged platforms are expected to drive the next wave of expansion.

GCI emphasizes a framework of MPEO — monitor, police, enforce, optimize — for regulators to manage the complex, multi-layered online gambling environment. Vali said, “If you cannot see the entire marketplace across regulated, unregulated and unacknowledged segments, you cannot control it. This is the shift. This is the problem we are helping to solve at GCI.”

Globally, the unregulated segment’s sheer scale threatens commercial revenue, reduces tax intake, and escalates consumer risk. Licensed operators, despite regulatory protections, capture only a fraction of audience attention, leaving 78% of wagering activity beyond the reach of authorities.

The report underscores the need for jurisdictions to adapt, highlighting the challenges of modern online gambling regulation where technology, global accessibility, and novel product types have outpaced decades-old legislation.