US commercial gaming revenue experienced a slight downturn in August, as reported by the American Gaming Association (AGA). The sector generated $6.48 billion in gross gaming revenue (GGR) for the month, marking a 0.6% drop compared to August 2025. The decline was primarily driven by a significant decrease in sports betting revenue, which outweighed gains in traditional casino gaming and iGaming.
Sports Betting Revenue Falls Sharply
Sports betting revenue fell by 15.6% year on year, totaling $1 billion in August. The total betting handle reached $10.89 billion, a marginal 0.7% decrease from the previous year. The hold rate also dropped, standing at 9.2% compared to 10.8% in August last year. The AGA attributed the lower handle to the increased availability of sports betting through prediction markets and a later start to the college football season. Notably, outside of months boosted by major events like the World Cup, betting handle has declined year on year since December 2025.
Traditional Casino and iGaming Show Growth
Traditional casino gaming continued to grow, with revenue rising 0.9% to $4.44 billion. Slot machines contributed $3.25 billion, up 1%, while table games generated $885.91 million, a 2.1% increase. The AGA noted that the recent expansion of Resorts World New York City played a role in boosting table game revenue. iGaming also recorded a 12.3% increase year on year, reaching $1.03 billion. However, the AGA observed that iGaming growth is moderating in the absence of new market launches.
Tax Revenue Impact and Regulatory Concerns
State tax revenue from regulated gaming operations totaled $1.46 billion in August, representing a 1.5% decline from the previous year. Tax revenue from sports betting specifically dropped by 14%. The AGA highlighted that tax collections are being affected by skill-machine operators, sweepstakes casinos, and platforms facilitating illegal sports betting through prediction markets. These entities do not contribute to state gaming taxes. According to the association, states have missed out on an estimated $1.56 billion in potential gaming tax revenue since the start of 2025 due to these backdoor betting platforms. The lost revenue impacts funding for public programs, including senior pension plans and responsible gaming initiatives.
Why This Matters for Industry Stakeholders
The August figures underscore the growing challenges faced by operators and regulators in the US gaming market. The decline in sports betting revenue, coupled with the rise of unregulated betting platforms, poses risks to both legal operators and state tax bases. For affiliates and suppliers, the shifting landscape may influence partnership opportunities and market strategies, especially as iGaming growth slows without new jurisdictions opening. Regulators are likely to increase scrutiny on prediction market platforms and other unlicensed activities that divert revenue from the regulated sector.
Key takeaways
- US commercial gaming revenue fell 0.6% in August, driven by a 15.6% sports betting decline.
- Traditional casino and iGaming revenues increased, but not enough to offset sports betting losses.
- State tax revenue from gaming dropped, partly due to unregulated betting platforms.
- Operators and regulators face mounting challenges from illegal and alternative betting channels.