U.S. gaming revenue hits record $78.6B in 2025 as AGA warns on prediction markets

The U.S. commercial gaming industry posted record revenue for a sixth consecutive year in 2025, fueled by strong growth in sports betting and online gaming, even as operators faced mounting pressure from illegal gambling and prediction market platforms, according to the American Gaming Association.

As per the association's annual State of the States report, commercial gaming revenue rose 9.1% year-over-year to a record $78.6 billion in 2025, while direct gaming tax revenue paid to state and local governments climbed 12.3% to $17.86 billion.

The industry, which the AGA estimates supports 1.8 million jobs nationwide, saw revenue growth in all but one of the 38 U.S. jurisdictions with commercial casino or sports betting operations. Thirty-four states and Washington, D.C., reported record annual gaming revenue.

“These results are especially meaningful given the economic uncertainty that characterized much of 2025,” Bill Miller, president and chief executive of the AGA, said in a statement. “They reflect the enduring appeal of legal, regulated gaming as a form of entertainment and the strength of the American blueprint for gaming that we have built together over decades."

Nevada remained the nation’s largest gaming market with nearly $15.8 billion in revenue, followed by Pennsylvania, New Jersey, New York, and Michigan. Nebraska, Washington, D.C., and Montana posted some of the strongest growth rates as newer gaming markets expanded.

The Las Vegas Strip retained its position as the country’s largest casino market, generating approximately $8.6 billion in revenue, while Atlantic City ranked second at nearly $2.9 billion.

Traditional land-based casino gaming generated a record $51.06 billion in revenue across 493 commercial casino locations in 27 states, up 2.3% from a year earlier. Electronic gaming devices continued to account for the majority of casino revenue.

Sports betting revenue increased 22.6% to $16.89 billion, with online wagering accounting for most of the total. New York surpassed $2.5 billion in annual sports betting revenue.

Meanwhile, U.S. iGaming revenue rose 27.6% to a record $10.73 billion. Pennsylvania remained the largest online casino market with $3.46 billion in revenue, and online gaming revenue surpassed land-based casino revenue for the first time in both Pennsylvania and New Jersey.

The report also highlighted growing concerns among regulators over illegal and unregulated gaming activity.

According to the AGA, authorities in 16 states took action during 2025 against prediction market platforms offering sports event contracts, while California, Connecticut, Montana, New Jersey, and New York enacted legislation banning sweepstakes gaming platforms resembling online casinos or sportsbooks.

“Working alongside state and tribal regulators, attorneys general, and law enforcement, we successfully stopped the advance of sweepstakes casinos and saw them pushed out of many key markets,” Miller said.

The AGA estimated illegal gaming operations, including offshore sportsbooks and online casinos, generate approximately $53.9 billion annually and result in more than $15 billion in lost tax revenue.

Miller said the industry is also confronting prediction markets. “We mobilized the industry and our partners to address the growing threat of prediction markets offering sports betting outside of established state and tribal gaming law,” he stated.

“This fight goes to the heart of the American gaming framework: consumer protections, responsible gaming standards, and the fair distribution of tax revenue depend on a clear, state-regulated system.”