US commercial gaming revenue hits $19.44B in Q2 2025, up 9.8% YoY

The gaming industry in the United States is growing exponentially. The American Gaming Association (AGA) has published a report showing that the industry has gained $19.44 billion in commercial gaming revenue. The report also provides insights into the industry’s financial performance at both the national and state levels. 

Focusing mainly on data for the second quarter of this year, the AGA’s report showed that $19.44 billion was obtained from all verticals, which include sports betting, iGaming, and land-based casinos. This represents a 9.8% increase year-on-year. 

One key factor that has boosted this revenue is the change in legislation towards online play. By legalizing online casinos in more states, gamers can now play instantly from their mobile devices or even play via Telegram. This kind of ease is not only convenient for gamers, but it also gives operators access to new markets and more revenue.

The increase represented a 9.8% year-over-year growth, making Q2 2025 the eighteenth time that the gaming industry has seen its revenue grow within one year. The data also indicate that the quarter has the highest revenue performance since commercial gaming became legal in the U.S.

This increase cuts across all the states and verticals in the commercial gaming sector. North Carolina was the only state to witness a drop in Q2 revenue, as it dropped by 18.5%. States like Nevada, Pennsylvania, and New York saw their commercial gaming revenue for Q2 run past the $1 billion mark, with Nevada leading the chart at $3.85 billion in gross gaming revenue.

Brick-and-mortar casinos brought in two-thirds of the entire commercial gaming revenue. In May 2025, it rose to 4.8% compared to last year. Between the second quarters of 2024 and 2025, traditional brick-and-mortar casinos, which offered slots and table games, generated a total gaming revenue of $12.83 billion. Across the country, casino slot machines brought in $9.37 billion in Q2, which is 3.6% higher than the figures from last year, while table games recorded a total revenue of $2.53 billion. 

Looking at the state level, traditional casinos in Virginia, Oklahoma, and Illinois generated the most revenue in Q2 on a year-over-year basis as they reported growth of 33%, 20.4% and 18.9% respectively. 

From the report, it was clear that online gaming, which consisted of both iGaming and sports betting, was growing steadily. The combined revenue from both sectors for Q2 was reported as $6.44 billion, which represents a 24.2% increase year-over-year. 

Only seven states in the country legally promote iGaming, and they posted a revenue of $2.60 billion, which is 32.2% percent higher than the $1.97 billion from Q2 2024. Sports betting, on the other hand, hit a new revenue record as it grew by 20.6%, reaching a valuation of $3.92 billion. In June alone, the revenue from all the reporting states rose by 39.5% leading to a significant year-over-year increase. The report also shows that between April and June 2025, Americans spent a total of $36.5 billion wagering on different sports. 

In taxes, state and local governments received a record amount of payments from operators during the period. Tax payments rose by 18% year-over-year as commercial gaming paid about $4.59 billion in gaming taxes to state and local governments.