Crackdowns pay off: Enforcement drives players to legal sportsbooks, GeoComply data shows

(September 2, 2025) – As the 2025 NFL season kicks off, the U.S. sports betting industry and millions of football fans are gearing up for the busiest time of the year. At the same time, new analysis from GeoComply shows that state enforcement actions against illegal offshore sportsbooks are driving measurable growth in the legal, regulated market.

GeoComply analyzed player engagement and new account growth during August across ten states with similar adult populations.* Within the past year five states—Arizona, Louisiana, Massachusetts, Michigan, and Tennessee—have issued cease-and-desist letters or taken other actions against notable offshore operators (examples of enforcement actions linked). Five states—Iowa, Indiana, Kentucky, North Carolina, and Virginia—have not.

The results show a clear enforcement impact:

Active Players: Enforcement states recorded, on average, 10% more YoY growth in active players during the month of August compared with non-enforcement states.
New Accounts: Even more striking, new account sign-ups this August were 39% higher in enforcement states. And as more players migrate into the legal market, technology like GeoComply’s KYC solution, IDComply, is helping operators streamline the onboarding process, keeping the funnel open for new customers.

“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.”

Enforcement in focus nationally

GeoComply’s new data comes on the heels of an American Gaming Association (AGA) analysis released last month, which found that illegal gambling still accounts for nearly a third of the U.S. market. The AGA called for continued vigilance against offshore operators that siphon billions of dollars in potential tax revenue and expose consumers to unprotected, unregulated betting.

Momentum is also building at the federal level. On August 5, 2025, a bipartisan coalition of 50 State Attorneys General urged the U.S. Department of Justice to crack down on offshore sportsbooks, underscoring that state-level enforcement has proven effective but cannot alone eliminate the problem.

“Illegal offshore sportsbooks remain the biggest competitor to the legal market, not other regulated operators,” said Levin. “A coordinated federal effort would further accelerate the positive shift that has been started by state-level enforcement.”

On February 1, 2024, GeoComply released a video exposing the dangers of illegal, offshore gambling and highlighting the urgent need for law enforcement and regulatory bodies to intervene. Since then, at least fifteen states have taken action against these operators.

“GeoComply sounded the alarm on offshore gambling, and states are answering. We’ll keep pushing to protect players and grow a legal market built on trust,” Levin said.

*GeoComply’s analysis referenced herein is based on aggregated data generated from its U.S. sportsbook customers in the referenced states and does not purport to be definitive or represent any entire state’s market.