Commercial gaming in the United States reached a new peak in 2025, according to the latest report from the American Gaming Association. Total US Gambling Revenue for the year reached 78.62 billion dollars, marking a 9.1 percent increase over the previous year. This performance represents a significant milestone for the industry as it continues to expand across both physical and digital platforms.
The annual State of the States report highlights that nearly every jurisdiction with commercial gaming operations saw financial gains. Out of 38 states plus the District of Columbia, 34 jurisdictions set new annual records for US Gambling Revenue. Mississippi was the only state to report a slight decline, though the drop was described as a small fraction of a percent. This widespread growth contributed to a record 17.86 billion dollars in direct gaming tax revenue paid to state and local governments, representing a 12.3 percent rise from 2024.
Geographically, the Las Vegas Strip remained the dominant market in the nation despite reporting nearly flat growth for the year. Other regions saw more dynamic shifts. The opening of new facilities in Illinois propelled strong growth in the Chicagoland and St. Louis markets. Conversely, traditional land-based casino revenue saw declines in several East Coast hubs, including Philadelphia, Detroit, Boston, and the Baltimore-Washington D.C. area. Despite these regional dips, Resorts World New York City maintained its position as the highest grossing commercial casino facility in the country, followed by MGM National Harbor and the Borgata Hotel Casino and Spa.
The digital sector emerged as a primary driver of the overall increase in US Gambling Revenue. Internet gaming, or iGaming, grew by 27.6 percent to reach a record total of 10.73 billion dollars. While only seven states currently offer legal online casinos, the sector is seeing rapid adoption. Pennsylvania remains the largest market for iGaming, with annual revenue surpassing 3.46 billion dollars. Notably, for the first time in 2025, iGaming revenue exceeded that of traditional land-based casinos in both Pennsylvania and New Jersey.
Despite the record performance of the legal market, the report also addressed the ongoing challenge of unregulated gambling. Estimates suggest that illegal offshore sportsbooks, unregulated machines, and illegal online casinos generate approximately 53.9 billion dollars in revenue annually. This activity results in an estimated 15 billion dollars in lost tax revenue for state governments. Officials noted that the rise of prediction market platforms has further impacted potential tax collections, costing states nearly 800 million dollars since early 2025.
As the industry moves through 2026, executives remain optimistic about future conditions. The report suggests that while land-based growth may be stabilizing in mature markets, the continued expansion of sports betting and the potential for new iGaming legislation offer avenues for further increases in US Gambling Revenue.
