The U.S. commercial gaming sector delivered another record year in 2025, with nationwide revenue climbing to $78.6 billion, according to the latest State of the States report released by the American Gaming Association (AGA).
The figure represented a 9.1% increase from 2024 and marked the sixth straight year of growth for the industry. Direct gaming tax contributions to state and local governments also increased, reaching $17.86 billion after rising 12.3% year-over-year.
The report covered 38 jurisdictions with legal commercial gaming or sports betting activity at the close of 2025. The analysis, prepared alongside VIXIO Regulatory Intelligence, excluded tribal casinos, retail lottery locations, charitable gaming, off-track betting sites, and racetracks without electronic gaming machines.
AGA President and CEO Bill Miller said the performance stood out because of the wider economic climate throughout the year.
“These results are especially meaningful given the economic uncertainty that characterized much of 2025,” Miller said. “They reflect the enduring appeal of legal, regulated gaming as a form of entertainment and the strength of the American blueprint for gaming that we have built together over decades.”
Sports Betting and iGaming Deliver Strong Gains
Sports wagering remained one of the largest contributors to commercial gaming growth during 2025. Nationwide sports betting revenue rose 22.6% to $16.89 billion, with every reporting jurisdiction posting annual gains.
New York generated the highest sports betting revenue in the country after operators reported $2.5 billion in earnings, accounting for nearly 15% of the national total. Illinois, New Jersey, and Ohio each exceeded $1 billion in sports betting revenue during the year.
The report did not include betting activity tied to tribal gaming operations, including the Seminole Tribe’s sportsbook business in Florida.
Online casino gaming also expanded rapidly. States with legal iGaming markets generated $10.73 billion in revenue during 2025, reflecting growth of 27.6% compared to the previous year.
Pennsylvania remained the largest online casino market in the country after iGaming revenue climbed almost 28% to $3.46 billion statewide. Together, Pennsylvania, Michigan, and New Jersey accounted for nearly 90% of all U.S. iGaming revenue.
Delaware, Rhode Island, and West Virginia recorded the fastest annual growth rates among online casino markets.
The report also noted a major shift in two key gaming states. In both Pennsylvania and New Jersey, online casino revenue surpassed land-based commercial casino revenue for the first time during 2025.
Maine approved legislation to legalize iGaming during the year, although the measure officially became law in early 2026.
Land-Based Casinos Continue to Generate Billions
Traditional casino gaming remained the industry’s largest segment in overall revenue terms. America’s 493 commercial casinos across 27 states produced $51.06 billion in revenue during 2025, representing annual growth of 2.3%.
Electronic gaming machines outperformed live table games in many reporting states. Revenue from electronic gaming devices increased 2.9%, while table game revenue declined by almost 1%.
Most jurisdictions with physical casinos posted revenue gains. Nebraska and Virginia reported the strongest growth rates among land-based gaming markets.
The Las Vegas Strip retained its position as the country’s top commercial casino market with $8.6 billion in revenue, although yearly growth remained relatively flat. Atlantic City and the Chicagoland region followed behind Nevada’s flagship market.
Outside Nevada and Mississippi, Resorts World New York City generated the highest gaming revenue among commercial casino properties in 2025. The Queens venue, which currently operates electronic gaming machines, received approval in December to introduce table games and a sportsbook as part of a larger redevelopment plan.
Other leading casino properties included MGM National Harbor in Maryland, Borgata Hotel Casino & Spa in Atlantic City, Encore Boston Harbor in Massachusetts, and Live! Casino & Hotel Maryland near Baltimore.
Industry Pressure Builds Around Unregulated Betting
While legal gaming operators expanded revenue, regulators and companies also increased scrutiny toward unlicensed betting products and prediction markets.
The AGA’s Gaming Industry Outlook survey, conducted with Oxford Economics, showed that 81% of gaming executives viewed prediction markets as a “very significant” threat to the industry.
“Illegal sports betting through sports event contracts is increasingly encroaching on legal, state, and tribal-regulated operators,” Miller said. “It’s clear the legal, regulated industry views this as a threat, and will continue to fight back and protect the integrity of our industry.”
According to the association, regulators, tribal authorities, attorneys general, and law enforcement agencies worked throughout 2025 to limit the spread of sweepstakes casinos and other unauthorized betting products.
Several states also moved against prediction market operators offering sports event contracts through cease-and-desist orders, lawsuits, and official guidance.
California, Connecticut, Montana, New Jersey, and New York passed legislation banning sweepstakes gaming platforms designed to resemble online casinos or sportsbooks.
An earlier AGA analysis published in August estimated that illegal offshore sportsbooks, unlawful online casinos, and unregulated gaming machines generate roughly $53.9 billion annually while reducing potential state tax revenue by more than $15 billion.
The industry outlook survey also showed stronger confidence among executives heading into 2026. More than 60% of respondents said they expect increases in revenue, capital investment, and balance sheet strength over the next six to 12 months.
“The legal state and tribal-regulated gaming industry continues to demonstrate resilience and adaptability in a dynamic economic environment,” Miller said. “Operators are focused on investing in innovation and delivering world-class entertainment, while also navigating an evolving competitive and regulatory landscape.”
Source:
“US Gaming Revenue Reaches New High in 2025”, news.worldcasinodirectory.com, May 13, 2026
