In 2025, the U.S. commercial gaming sector achieved unprecedented revenue for the sixth straight year, driven by remarkable growth in sports betting and online gaming, despite operators battling challenges posed by illegal gambling and prediction market platforms, as reported by the American Gaming Association (AGA).

According to the AGA’s annual State of the States report, the revenue from commercial gaming surged 9.1% year-over-year to an all-time high of $78.6 billion in 2025, while state and local governments received a 12.3% increase in direct gaming tax revenues, totaling $17.86 billion.

The industry, as estimated by the AGA, supports approximately 1.8 million jobs across the nation and observed revenue growth in nearly every one of the 38 U.S. jurisdictions with commercial casino or sports betting operations. A total of 34 states plus Washington, D.C., recorded their highest annual gaming revenues.

“These outcomes hold particular significance in light of the economic instability that marked much of 2025,” stated Bill Miller, President and CEO of the AGA. “They underscore the lasting attraction of legal, regulated gaming as entertainment and highlight the strength of the American gaming framework we’ve cultivated over decades.”

Nevada maintained its status as the largest gaming market in the country, generating close to $15.8 billion in revenue, followed by Pennsylvania, New Jersey, New York, and Michigan. States such as Nebraska, Washington, D.C., and Montana recorded some of the most impressive growth rates as newer gaming markets evolved.

The Las Vegas Strip remained the largest casino market in the U.S., yielding around $8.6 billion in revenue, with Atlantic City following as the second-largest at nearly $2.9 billion.

Traditional land-based casino gaming achieved a record revenue of $51.06 billion across 493 commercial casino locations in 27 states, marking a 2.3% increase from the previous year. Electronic gaming devices continued to dominate casino revenue streams.

Revenue from sports betting surged 22.6% to reach $16.89 billion, with the majority generated from online wagers. New York topped $2.5 billion in annual sports betting revenue.

Additionally, U.S. iGaming revenue saw a significant rise of 27.6%, reaching a record $10.73 billion. Pennsylvania held the title for the largest online casino market with revenue of $3.46 billion, with online gaming revenue exceeding that of land-based casinos for the first time in both Pennsylvania and New Jersey.

The report noted increasing concerns among regulators regarding illegal and unregulated gaming activities.

The AGA indicated that officials in 16 states acted during 2025 against prediction market platforms that offered contracts on sports events, while California, Connecticut, Montana, New Jersey, and New York implemented laws preventing sweepstakes gaming platforms that mimic online casinos or sportsbooks.

“By collaborating with state and tribal regulators, attorneys general, and law enforcement, we successfully curbed the expansion of sweepstakes casinos and eliminated them from many key markets,” Miller remarked.

The AGA estimated that illegal gaming activities, including offshore sportsbooks and online casinos, generate roughly $53.9 billion annually, resulting in over $15 billion in lost tax revenue.

Miller expressed that the industry is also facing challenges posed by prediction markets. “We rallied our sector and partners to tackle the escalating risks from prediction markets that offer sports betting outside established state and tribal gaming laws,” he affirmed.

“This struggle impacts the core of the American gaming framework: consumer protections, responsible gaming standards, and equitable tax revenue distribution depend on a clearly defined, state-regulated system.”