In 2025, the U.S. gaming sector thrived amid ongoing consumer engagement alongside increased regulatory focus. Both state-sanctioned and tribal gaming operated within well-defined legal parameters, while regulatory actions and legislative objectives increasingly targeted illegitimate and unregulated activities within the market.
For its annual wrap-up, Yogonet had an exclusive conversation with Tres York, Vice President of Government Relations at the American Gaming Association (AGA), who shared insights on the industry’s performance, highlighted significant policy issues in 2025, and detailed the AGA’s strategic direction as the sector transitions into 2026.
Based on the feedback from AGA members and your collaboration with vital industry players, how would you summarize the gaming industry’s performance this past year? What role did the AGA play in addressing these challenges?
The gaming industry witnessed a dynamic year in 2025, fueled by robust consumer interest, the rise of responsible gaming initiatives, and intensified actions against illegal operators. Over 134 million Americans frequented casinos, and the industry’s revenue was nearing a groundbreaking $60 billion by the third quarter, showcasing that legal gaming remains a popular and trusted entertainment option.
Regulators and lawmakers collaborated effectively against illegal operators to safeguard the legal marketplace and protect state and tribal rights, with the AGA at the forefront of these efforts. By conducting research, engaging in advocacy, and directly interfacing with industry partners, regulators, and state Attorneys General, we highlighted the presence of illegal operators and strongly urged for robust enforcement actions against them. These collaborative efforts fortified a resilient, responsible, and increasingly safeguarded gambling ecosystem throughout 2025.
How would you evaluate the progression of the U.S. gaming sector in 2025? What policy issues were most pressing this year, and which emerging trends do you anticipate will gain momentum in 2026?
The gaming landscape continued to evolve rapidly in 2025, with the legal, state-regulated, and tribal markets standing firm against the backdrop of ongoing illegal and unregulated challenges. Data we released indicated that the illegal market constitutes one-third of the legal one, prompting significant actions at all governmental levels to combat this substantial threat, which included strong appeals from Congress and numerous state attorneys general for the Department of Justice to take stringent actions against illegal offshore operators.
“Sweepstakes” casinos remained a focal point this year, as six states implemented legislative bans, notably in two of the four largest U.S. markets — California and New York, while over a dozen state gaming regulators or Attorneys General initiated enforcement measures, such as cease-and-desist orders and subpoenas. These unlicensed and unregulated operations can no longer remain undercover, and the legal sector will persist in opposing operators exploiting legal loopholes to provide unauthorized real-money gambling experiences to the public.
Nonetheless, the most significant threat to the legal gambling industry this year was the growth of prediction market platforms that are ostensibly regulated at the federal level by the Commodities Futures Trading Commission (CFTC), offering “sports event contracts” that, in our opinion, closely resemble sports wagering.
To date, nine states have issued cease-and-desist notices to prediction market platforms, with active litigations underway in six states at the federal level, alongside a state lawsuit led by the Massachusetts Attorney General waiting for consideration in state court. Moreover, gaming regulators have begun informing licensees that engagement with prediction markets — which are seen as illegal gambling — could jeopardize their gaming licenses.
Our research indicates that Americans predominantly regard both sweepstakes casinos and prediction markets as gambling.
The AGA will persist in advocating for the sovereignty of state and tribal gaming and ensuring stringent and consistent enforcement. Our mission is to deliver data and insights based on research that underscore the merits of the state-regulated and tribal system and the unique risks posed by these unregulated offerings to consumers, operators, and the industry as a whole.
Looking toward 2026, these concerns will continue to influence the policy and business climate and remain at the heart of the AGA’s endeavours with regulators, lawmakers, and state Attorneys General.
As we look toward 2026, what will be the AGA’s foremost strategic priorities? Are there specific policy objectives, industry initiatives, or milestones you aim to achieve in the upcoming year and beyond?
In 2026, we will maintain our commitment to safeguarding the legal, state-regulated, and tribal gaming markets from illegal and unregulated gambling. I believe our primary focus as we transition into the next year will remain on prediction markets, where our stance is unequivocal: sports event contracts equate to sports betting, which is regulated at the state level.
Concurrently, we will further our efforts in promoting responsible gaming. Following the launch of our Play Smart from the Start consumer platform, we’re dedicated to enhancing industry-wide responsible gaming standards and ensuring a secure gaming atmosphere.
These priorities — protecting legal markets, defending state and tribal sovereignty, and promoting responsible gaming — will consistently direct our advocacy and industry initiatives throughout 2026.