The U.S. commercial gaming sector has reported unprecedented revenue for the sixth consecutive year in 2025, driven by significant growth in sports betting and online gaming. This surge comes despite increasing challenges from illegal gambling and prediction market platforms, as stated by the American Gaming Association (AGA).
According to the AGA's annual report, the 'State of the States', commercial gaming revenue rose by 9.1% year-on-year, reaching a remarkable $78.6 billion in 2025. Additionally, the direct gaming tax revenue collected by state and local governments increased by 12.3%, totaling $17.86 billion.
The gaming industry, which the AGA estimates supports approximately 1.8 million jobs across the country, experienced revenue growth in all but one of the 38 U.S. jurisdictions that host commercial casinos or sports betting. Notably, 34 states along with Washington, D.C., recorded their highest annual gaming revenue to date.
Bill Miller, president and CEO of the AGA, commented on these results, stating, “These figures are particularly significant given the economic uncertainty that marked much of 2025. They showcase the lasting appeal of legal, regulated gaming as a form of entertainment and highlight the robust framework for gaming that we have developed together over many years.”
Nevada continued to hold its title as the largest gaming market in the U.S., generating nearly $15.8 billion in revenue, followed by Pennsylvania, New Jersey, New York, and Michigan. Nebraska, Washington, D.C., and Montana also demonstrated some of the highest growth rates as newer gaming markets emerged.
The Las Vegas Strip maintained its status as the largest casino market in the nation, bringing in about $8.6 billion, while Atlantic City followed as the second largest with nearly $2.9 billion in revenue.
Traditional land-based casino gaming achieved a record revenue of $51.06 billion across 493 commercial casino venues in 27 states, reflecting a 2.3% increase from the previous year. Electronic gaming devices continued to dominate casino revenue.
Sports betting revenue saw a substantial increase of 22.6%, totaling $16.89 billion, with online wagering contributing significantly to this figure. New York alone surpassed $2.5 billion in annual sports betting revenue.
In parallel, U.S. iGaming revenue surged by 27.6%, reaching a new high of $10.73 billion. Pennsylvania remained the leading online casino market with $3.46 billion in revenue, and for the first time, online gaming revenue exceeded that of land-based casinos in both Pennsylvania and New Jersey.
The report also raised alarms regarding the rise of illegal and unregulated gaming activities. The AGA noted that authorities in 16 states took measures in 2025 against prediction market platforms that offered contracts on sports events. Furthermore, states like California, Connecticut, Montana, New Jersey, and New York enacted laws prohibiting sweepstakes gaming platforms that mimic online casinos or sportsbooks.
Bill Miller remarked, “Collaborating with state and tribal regulators, attorneys general, and law enforcement, we effectively curtailed the proliferation of sweepstakes casinos, leading to their removal from many critical markets.”
The AGA estimates that illegal gaming operations, including offshore sportsbooks and online casinos, generate roughly $53.9 billion annually, resulting in over $15 billion in lost tax revenue.
Miller also highlighted the industry's battle against prediction markets. “We rallied the industry and our partners to confront the escalating threat posed by prediction markets that offer sports betting outside of established state and tribal gaming regulations,” he stated. “This struggle is central to the American gaming framework: consumer protections, responsible gaming standards, and equitable tax revenue distribution rely on a transparent, state-regulated system.”