U.S. commercial gaming revenue hits record $72B in 2024 despite signs of economic strain

U.S. commercial gaming revenue surged to an all-time high of $72 billion in 2024, marking a 7.5% increase from the previous year and the sector’s fourth consecutive annual record, according to a report released Tuesday by the American Gaming Association (AGA).

The growth was fueled by expanding sports betting and iGaming markets, with 28 of the 38 operational states setting individual revenue records. The industry also delivered a record $15.9 billion in state and local tax revenue, up 8.5% year-on-year.

“2024 was another record year for US gaming, per the AGA,” the association said in its State of the States and Gaming CEO Outlook reports.

Revenue from traditional commercial casinos reached $49.89 billion in 2024, representing a modest 1% rise across 492 facilities. In contrast, sports betting revenue jumped 25% to $13.78 billion, supported by market launches in North Carolina and Vermont, which helped push the national handle to $149.9 billion.

iGaming posted even stronger gains, rising 28.7% to $8.4 billion across seven states. Rhode Island, which launched in 2024, added $26 million to the total. All seven states with legal iGaming logged monthly revenue records in March.

While online verticals flourished, some traditional markets faltered. The Las Vegas Strip saw a 5% year-on-year revenue decline in March and remains down more than 3% for the fiscal year.

Despite the robust headline figures, the AGA’s Gaming Conditions Index fell 0.9% in the first quarter of 2025—the largest contraction since the pandemic. The association cited “weaker real wages, marginally negative sentiment and real below average revenue growth” as key contributors.

Executive outlooks were subdued. The AGA’s survey of 28 industry executives found that 36% described current business conditions as negative, compared to 18% who viewed them positively. Overall sentiment was -5.6% for the quarter, meaning more respondents were pessimistic than optimistic.

“Although executives are bullish on capital investments, expectations around the pace of hiring and wage growth remain muted,” the AGA noted. Top concerns included employee wages and benefits, regulatory and tax policy changes, and data protection.

Despite near-term headwinds, long-term optimism appears intact. More than 80% of surveyed executives were neutral about future conditions, with 14% positive and only 4% negative.

“Executive sentiment around future customer activity improved to its highest level since 2022 Q1,” the report said. The share of executives citing insufficient customer demand as a limiting factor dropped from 22% in Q3 2024 to 11% in Q1 2025.

“AGA member companies face a landscape where consumers’ discretionary activities will be tested by tariffs on imported goods and stock market setbacks,” the association added.

March Madness betting underscored the industry’s momentum, with $3.1 billion wagered—a 13.8% increase from 2024—despite no new states legalizing sports betting since March of that year. Meanwhile, event-related demand at casino hotels slightly exceeded pre-pandemic levels, growing 0.3% year-on-year.

While short-term caution persists, industry leaders are banking on continued expansion in digital channels and capital investment to sustain growth in the years ahead.