The US gambling industry generated a record $78.6 billion in revenue in 2025 — a 9.1% increase year-on-year — according to the American Gaming Association’s annual State of the States report. The headline figure was driven primarily by the continued explosive growth of online sports betting and online casino products, with trusted online casinos and licensed sportsbooks demonstrating that regulated digital gambling is now a firmly established pillar of the American entertainment economy.
AGA President and CEO Bill Miller described the results as particularly significant given the economic uncertainty that characterised much of 2025. “These results reflect the enduring appeal of legal, regulated gambling as a form of entertainment, as well as the strength of the American gaming model that we have built together over decades,” he said.
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Online betting and iGaming lead the way
Online sportsbooks delivered revenue of $16.89 billion — a 22.6% year-on-year increase — while online casino revenue grew 27.6% to reach $10.73 billion. The iGaming figure is especially notable given that online casinos remain legal in only seven US states, suggesting the growth potential of the segment as more states consider legalisation.
Of the 38 US jurisdictions with legalised gambling, 37 recorded revenue growth in 2025. Mississippi was the sole exception, posting a marginal decline.
The leading states
New York again claimed the top spot in online sports betting, accounting for 14.8% of total national sportsbook revenue at $2.5 billion. Illinois, New Jersey and Ohio each surpassed $1 billion in sports betting revenue.
In online casino, Pennsylvania, Michigan and New Jersey collectively accounted for nearly 90% of total iGaming revenue. Pennsylvania led the field with $3.46 billion — up 28% year-on-year — while Delaware, Rhode Island and West Virginia were highlighted for their above-average growth rates.
Land-based casinos hold steady
Despite the rapid growth of digital channels, land-based casinos also delivered positive results. The country’s 493 commercial casinos generated $51.06 billion in revenue — a 2.3% increase. Slot machines were the strongest performer within the land-based segment, growing 2.9%, while table game revenue dipped by nearly 1%.
The Las Vegas Strip remains the largest commercial casino market in the country at $8.6 billion, followed by Atlantic City and the Chicagoland region. Analysts expect New York to climb the rankings as the city’s casino infrastructure expands in the coming years.
Record tax contributions — and new competitive threats
Operators contributed a record $17.86 billion in state and local tax revenue in 2025 — a 12.3% increase on the previous year. Including tribal gaming revenues, which have not yet been published, Miller projects the total US gambling industry generated $125 billion in 2025.
The AGA also flagged two emerging challenges. Prediction market exchanges — allowing users to trade contracts on sporting event outcomes across all 50 states — have grown significantly and are now regarded by the industry as direct competitors to licensed sportsbooks. Sweepstakes casinos, which operate outside traditional licensing frameworks using virtual currency rather than real money, are also placing pressure on the regulated online casino market. Several states have already moved to introduce legislative restrictions on these operators.
The road ahead
Looking to the remainder of 2026, Miller reaffirmed the AGA’s commitment to protecting state and tribal authority over gambling regulation and advocating for a favourable regulatory environment. “I look forward to working with all of you to defend the American gaming model, which has benefited our industry and the states where we operate,” he said.
For players, the record figures are a reminder of what a well-functioning regulated market delivers — and why choosing trusted online casinos and licensed platforms remains the most important decision any bettor can make. The $17.86 billion in tax contributions generated by legal gambling in 2025 is a direct product of players choosing regulated channels over unlicensed alternatives. Every dollar wagered on trusted online casinos and licensed sportsbooks is a dollar that stays within the system — funding public services, supporting responsible gambling programmes, and reinforcing the framework that protects players in return.
