Published on: May 13, 2026, 08:46h. 

Updated on: May 13, 2026, 08:46h.

• Commercial gaming revenue reached an all-time high of $78.61 billion in 2025
• 2025 marked the fifth year in a row of record commercial gaming revenue
• The commercial sector continues to thrive despite rising competition from prediction markets and sweepstakes casinos

In 2025, the commercial gaming sector achieved an unprecedented revenue peak. This milestone was reached despite facing new challenges, particularly from prediction markets involved in sports trading and online sweepstakes casinos.

On Tuesday, the American Gaming Association revealed its 2026 State of the States report. The U.S. commercial gaming sector generated a record gross gaming revenue (GGR) of $78.61 billion, representing a 9.1% increase from 2024, translating to over $6.5 billion more.

Out of the 38 jurisdictions in the U.S. with commercial casinos or sports betting, all but one entity reported a revenue increase. Missouri stood out with stagnant year-over-year GGR. Thirty-four states and Washington, D.C. set new annual revenue records.

“This remarkable success generated $17.9 billion in tax revenue for state and local governments, supporting vital community services such as education and infrastructure,” stated Bill Miller, AGA’s president and CEO.

Commercial revenue encompasses casinos, sports betting, and iGaming. The GGR total does not include tribal gaming, lottery income, fantasy sports, charitable gaming, skill-based games, prediction markets, nor any unregulated gambling activities.

Revenue from traditional casinos hit a remarkable $51.7 billion, an increase of 2.3%. Sports betting also reached new heights, with operators retaining $16.9 billion from wagers. iGaming GGR reached an all-time high of $10 billion, with states like Michigan, New Jersey, and Pennsylvania powering the online market.

The year 2025 represented the fifth consecutive year of setting new revenue benchmarks for the commercial gaming industry. This record-breaking performance occurred despite the rise of prediction markets and sweepstakes casinos, which the AGA argues pose a threat to the regulated gambling landscape.

Commercial Gaming Holds Steady Amid Threats 

Prediction markets, federally regulated trading platforms allowing users aged 18 and older to trade shares based on future events, have recently entered the sports arena. Critics assert that this constitutes sports betting, but the Commodity Futures Trading Commission (CFTC) maintains that it possesses the authority — not individual states — to decide on the regulation of prediction market activities.

The CFTC argues that sports markets aid the public in forecasting, planning, and managing risks related to future events. In contrast, the AGA claims that these trades undermine state gaming regulations and raise significant concerns regarding gambling addiction and consumer protection. Additionally, prediction markets do not yield state tax revenue, according to the AGA.

The AGA declared that it has galvanized the commercial gaming sector and its regulators to tackle the escalating challenges posed by prediction markets that provide sports betting outside state and tribal gaming laws.

“This struggle is central to the American gaming framework: consumer protections, responsible gaming standards, and fair tax revenue distribution hinge on a well-defined, state-regulated system,” Miller emphasized.

Moreover, unregulated online sweepstakes casinos continue to threaten the integrity of the regulated industry. These casinos pose as free-to-play social gaming platforms, yet their use of a dual-currency system allows players to purchase promotional sweep coins to play games and potentially redeem them for cash has drawn criticism from the AGA.

“We have confronted the illegal gaming market on various fronts. By collaborating with state and tribal regulators, attorneys general, and law enforcement, we have effectively curtailed the expansion of sweepstakes casinos in numerous significant markets,” said Miller.

Increase in Gambling Losses

Miller noted that once the 2025 revenue figures for the tribal gaming sector are unveiled in the coming weeks, the combined revenue from regulated commercial and tribal gaming will likely achieve a new high.

Miller estimates that total gaming revenue for last year was approximately $125 billion.