U.S. Gaming Revenue Hits $78.7B in 2025, American Gaming Association Reports
The U.S. commercial gaming industry has delivered another record-breaking year, and the numbers suggest the sector’s digital shift is accelerating rather than plateauing.
According to new data from the American Gaming Association (AGA), total commercial gaming revenue reached $78.72 billion in 2025, representing a 9.2% increase year-over-year. State-regulated gaming also generated $18.09 billion in gaming taxes, up 15.1%, supporting education, infrastructure and other public services nationwide.
Growth Across All Vertical Segments
Traditional brick-and-mortar gaming remained the largest revenue contributor, generating $50.94 billion, a 2.3% increase and the highest grossing year on record for land-based operations.
But the stronger momentum came from digital channels.
Sports betting revenue climbed 22.8% to $16.96 billion, fueled by $166.94 billion in total wagers. National hold rose to 10.16%, up 98 basis points. Meanwhile, state-regulated sportsbooks delivered $3.71 billion in taxes, a 32.4% increase year-over-year.
iGaming posted the fastest growth rate of all verticals, rising 27.6% to $10.74 billion. Tax contributions from online casino operations reached $2.59 billion, up 36.9%.
Notably, online gaming’s share of total commercial revenue expanded to 34.5%, compared with 30% in 2024, underscoring the sector’s structural transition.
A Nationwide Revenue Lift
All 38 commercial gaming jurisdictions recorded annual revenue growth in 2025. December alone generated $7.29 billion in revenue, up 17.9%, while Q4 marked the strongest fourth quarter on record at $21.30 billion.
In three states, including New Jersey, Pennsylvania and Michigan, iGaming revenue has now surpassed commercial brick-and-mortar revenue for the full year, a milestone that would have been unthinkable just five years ago and one that continues to be reflected in recent state-level performance data.
Regulatory Friction and Tax Leakage
Despite record results, the AGA has reiterated concerns about prediction markets offering sports event contracts outside state and tribal regulatory frameworks, concerns that align with recent survey data showing most Americans view prediction markets as a form of betting. According to the association, these platforms have diverted more than $500 million in potential sports betting tax revenue since the start of 2025.
AGA President and CEO Bill Miller said the latest figures demonstrate the continued appeal of regulated markets and the importance of strong state oversight as the industry evolves, particularly as compliance standards tighten around areas such as anti-money laundering and digital asset monitoring.
In practical terms, the data strengthens the industry’s argument that sports betting should remain under state and tribal regulation, both to protect consumers and to ensure tax contributions flow back into communities, a debate that has already led to high-profile departures from the American Gaming Association as divisions over prediction markets deepen.
Outlook
Looking ahead, Maine is expected to launch iGaming in late 2026, becoming the eighth state to legalize online casino gaming.
More broadly, the 2025 performance confirms that U.S. gaming growth is increasingly digital, increasingly regulated, and increasingly central to state revenue planning.
Source: American Gaming Association
