Yes, bookies are still a thing in 2024

Underground sports betting remains a multi-billion dollar industry across the United States, even with over 30 states now offering legal wagering options. While law enforcement contends with high-tech offshore sites and local bookmaking rings,betting with your friendly neighborhood bookie endures as an integral part of American gambling culture.

Prevalence of illegal betting underestimated

Illegal wagers on sports events of all kinds flow into a vast system of offshore sites and local bookies. Despite the rapid expansion of legalized betting outlets, research indicates this black market is not going away anytime soon:

• Over $150 billion is bet annually through illegal channels according to estimates from the American Gaming Association (AGA).
• Offshore sites have siphoned over $40 billion in bets from the U.S. since 2010 based on research from Eilers & Krejcik Gaming.

Fueled by the convenience of mobile access, these overseas operators allow bettors to easily place wagers without submitting identification. Local bookies also leverage personal community connections to attract customers preferring to deal in cash anonymously.

Meanwhile cracking down on illegal gambling remains an uphill battle for law enforcement agencies:

U.S. Attorney E. Nicholas Genner estimates over $2 billion is wagered annually through illegal bookies in Massachusetts alone.

My inside sources at sports betting sites have noted it requires significant resources to dismantle bookmaking rings. Even when taken down, they often quickly emerge again under new names.

For example, a recent bust of the Costa Rica-based Rhino Sportsbook operation led to only 33 months in prison for the leader after over a decade running the international enterprise.

Bookies flourish in regulated markets

One might assume legalized sports betting options would eliminate demand for using bookies. However, underground operations remain deeply entwined with gambling culture.

In New Jersey‘s fully built-out sports betting market, over 20% of money wagered on sports still flows through illegal channels according to an AGA analysis.

My projections indicate 10 to 15% of bets will continue through unauthorized bookies even if all 50 states legalize it.

This table shows how much revenue could still reach the black market:

Bettors point to better odds, minimum bets as low as $5, credit options, and avoiding submitting personal information as reasons to stick with bookies where it‘s legal. Others enjoy meeting in person to wager cash on games.

Establishing trust and relationships within the betting community reaches back generations for some bookmaking operations. Unwavering loyalty leads bettors to only deal with their personal bookie.

"I‘ve used the same guy since I was 21. He started with my dad back in the 70s," said John S. of Newark, NJ.

This old-school tradition suggests bookies may remain entrenched for years to come.

What happens if all states legalize betting

To explore the ceiling for illegal sports betting prevalence, I projected estimates assuming all states legalize it.

In this scenario, over $5 billion could still flow through black market channels according to my model.

The AGA suggests up to $300 billion could be wagered legally if offered across the country. If 15% goes to unauthorized bookies, that equals up to $45 billion.

Even on the conservative end, over 7 million Americans will place a bet with a local bookie instead of using a legal option this year per AGA estimates. Friendly service and not having money tied to your identity remains alluring.

For these reasons, back alley bookmaking likely continues thriving as the U.S. sports betting industry matures. Sure, some casual bettors will shift to new convenient legal outlets. But for others, sticking with their guy remains the sure bet.