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The U.S. commercial gaming industry recorded its sixth consecutive year of revenue growth in 2025, with nationwide earnings climbing to a record $78.6 billion, according to the American Gaming Association’s latest State of the States report (pdf).
The report showed total commercial gaming revenue increased 9.1% from the previous year, while direct gaming tax revenue paid to state and local governments rose 12.3% to $17.86 billion. The industry also supported an estimated 1.8 million jobs across the country.
The American Gaming Association (AGA) said 37 of the 38 jurisdictions with legal commercial gaming or sports betting reported year-over-year revenue gains in 2025. Mississippi was the only jurisdiction to post a decline, though the decrease was described as marginal.
“These results are especially meaningful given the economic uncertainty that characterized much of 2025,” AGA President and CEO Bill 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.”
The annual report, developed with VIXIO Regulatory Intelligence, reviewed commercial gaming activity across 38 jurisdictions with legal casino gaming or sports betting operations as of the end of 2025. Tribal casinos, lottery retail locations, racetracks without electronic gaming devices, off-track betting sites, and charitable gaming venues were not included in the analysis.
Sports Betting and Online Gaming Drive Growth
Sports betting continued to expand rapidly in 2025, generating $16.89 billion in revenue nationwide, up 22.6% from the previous year. All 35 reporting sports betting jurisdictions recorded revenue growth during the year.
New York led the country in sports betting revenue, accounting for nearly 15% of the national total with $2.5 billion in operator revenue. Illinois, New Jersey, and Ohio also surpassed the $1 billion mark.
The report excluded sports betting activity tied to tribal gaming, including Florida’s mobile and retail sportsbooks operated by the Seminole Tribe.
Online casino gaming also produced strong gains. Revenue from iGaming reached $10.73 billion across the seven states where online casinos are legal, reflecting a 27.6% increase from 2024.
Pennsylvania remained the country’s largest iGaming market after statewide online casino revenue rose nearly 28% to $3.46 billion. Michigan, New Jersey, and Pennsylvania combined generated almost 90% of nationwide iGaming revenue.
Delaware, Rhode Island, and West Virginia posted the highest year-over-year growth rates among online gaming markets.
The report noted that iGaming revenue exceeded land-based commercial casino revenue for the first time in both Pennsylvania and New Jersey during 2025. Maine approved legislation legalizing iGaming during the year, though the measure only became law in early 2026.
Land-Based Casinos Maintain Steady Revenue
America’s 493 commercial casinos across 27 states generated $51.06 billion in traditional casino gaming revenue during 2025, representing a 2.3% increase from the previous year.
Electronic gaming devices posted stronger performance than live table games. In states reporting separate data, electronic gaming revenue rose 2.9%, while table game revenue declined by nearly 1%.
Nearly three-quarters of states with physical casinos reported revenue increases. Nebraska and Virginia experienced the fastest growth rates in land-based gaming.
The Las Vegas Strip remained the largest commercial casino market in the United States, producing $8.6 billion in revenue despite relatively flat annual growth. Atlantic City and the Chicagoland market followed behind Las Vegas in total gaming revenue.
Outside Nevada and Mississippi, Resorts World New York City ranked as the highest-grossing commercial casino property in 2025. The Queens-based facility, which currently operates electronic gaming devices, received approval in December to add table games and a sportsbook as part of a redevelopment project.
Other top-performing 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 Faces Regulatory and Competitive Pressures
Alongside the revenue gains, gaming operators and regulators faced increasing concerns over unregulated betting platforms and new forms of competition.
The AGA identified prediction markets as a growing challenge for the regulated gaming sector. According to the organization’s Gaming Industry Outlook survey conducted with Oxford Economics, 81% of gaming executives described 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.”
The AGA said it worked with regulators, attorneys general, tribal authorities, and law enforcement agencies to limit the expansion of sweepstakes casinos and unlicensed betting products.
The association also stated that several states took action during 2025 against prediction market operators offering sports-related event contracts. Enforcement steps included cease-and-desist orders, lawsuits, and official guidance declaring such products to be unauthorized sports wagering.
Five states — California, Connecticut, Montana, New Jersey, and New York — approved legislation specifically banning sweepstakes gaming platforms that imitate online casinos or sportsbooks.
The AGA estimated in an August analysis that illegal offshore sportsbooks, unregulated gaming devices, and unlawful online casinos collectively generate around $53.9 billion annually, costing states more than $15 billion in lost tax revenue.
Executives Report Positive Outlook for 2026
The association’s Gaming Industry Outlook survey showed improved confidence among gaming executives entering 2026 despite broader economic uncertainty.
The Gaming Conditions Index, which tracks gaming revenue, wages, employment, executive sentiment, and future activity at casino hotels, showed real economic activity in the gaming industry increased 1.5% year-over-year during the first quarter of 2026.
Executive sentiment reached 21.4% net positive, its strongest reading since the third quarter of 2022. More than 60% of surveyed executives said they expect higher capital investment, stronger revenue, and improved balance sheet conditions during 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.”
The report also found that 62% of executives expect capital investment to rise, while half of respondents believe artificial intelligence will produce cost savings over the coming year.
Industry leaders also pointed to ongoing pressures from inflation, tariffs, geopolitical tensions, higher fuel prices, labor costs, and supply chain disruptions. Hiring expectations remained negative for the seventh straight survey period, while wage expenses continued to rank as the industry’s largest operational cost pressure.