The revenue from U.S. commercial gaming surged by 9.2% year-over-year, reaching an unprecedented $78.72 billion in 2025, with taxes from gaming increasing by 15.1% to $18.09 billion, as reported by the American Gaming Association (AGA).
The insights, published via AGA’s Commercial Gaming Revenue Tracker, revealed that all 38 commercial gaming markets experienced revenue growth annually, highlighting robust expansion in traditional casinos, sports betting, and iGaming.
“Once again, legal commercial gaming in the U.S. has yielded outstanding outcomes for consumers, operators, and the communities we support,” stated Bill Miller, President and CEO of the American Gaming Association.
Revenue from traditional gaming increased to $50.94 billion, marking a 2.3% rise, and generated $11.33 billion in taxes, a 7.2% growth.
Sports betting revenue soared by 22.8% to $16.96 billion, with a total handle of $166.94 billion, representing an 11.0% uplift. State-licensed sportsbooks contributed $3.71 billion in taxes, showcasing a 32.4% year-over-year increase.
iGaming revenue climbed 27.6% to $10.74 billion, yielding $2.59 billion in taxes, representing an increase of 36.9%.
Miller noted: “These unprecedented revenues and tax contributions highlight the widespread appeal of regulated gaming markets and underscore the necessity for robust state oversight as our industry progresses.”
Tax revenue collected from legally regulated gaming is vital for funding education, infrastructure, and various services nationwide, as emphasized by the association.
However, they issued a caution regarding the threat posed by the growing sector of prediction markets to the regulated gaming industry. Gaming executives and certain lawmakers are concerned about these markets providing contracts for sporting events beyond state and tribal regulations.
“These platforms function without state oversight, lack adherence to the same consumer protection and responsible gaming standards, and do not contribute to tax revenues,” stated the AGA.
The association estimates that prediction markets handling sports event contracts have redirected over $500 million in potential sports betting tax revenue to date.
“As we reach another milestone year in 2025, the industry’s performance reinforces a fundamental principle,” Miller added. “Sports betting should be regulated by state and tribal authorities. This is essential for consumer protection and community benefit sharing.”