Momentum in the Digital Era: AGA Reports $6.22B February Revenue for U.S. Gaming

U.S. commercial gaming revenue came in at $6.22bn for February, up 8.5% compared to the same period last year. On a year-to-date basis, total GGR reached $13.04bn, reflecting a 6.8% increase, according to data from the American Gaming Association (AGA).

While the headline numbers remain positive, the underlying performance tells a more mixed story. Growth is no longer being driven evenly across segments, and margins are starting to matter more than raw handle.

Land-Based Stability Masks Limited Upside

Steady performance without expansion

Land-based casino revenue reached $4.0bn in February, with slots continuing to do most of the heavy lifting and table games showing only modest improvement. Slot revenue rose to $2.95bn, up 5.0%, while table games brought in $805.7m, increasing by just 1.2%.

This doesn’t point to a market that’s accelerating. Instead, it suggests things are settling into a steady pattern. The gains appear to be coming from better footfall and pricing rather than any meaningful expansion in demand. For operators, land-based remains dependable from a cash flow perspective, but it’s not where future growth is likely to come from.

Sports Betting: Scale Increases, Margins Tighten

Hold pressure and declining efficiency

Sports betting is where the disconnect becomes more visible. Revenue dropped 6.4% year-on-year to $1.17bn, even though handle still inched up to $12.66bn.

The reason is straightforward – hold is under pressure. It slipped to 9.24%, down 73 basis points, and handle itself has now declined month-on-month for four consecutive periods.

A few factors are feeding into this. Competition is tighter, promotional activity hasn’t really eased, and recent sporting results haven’t favoured operators. On top of that, as markets mature, hold levels naturally tend to compress.

For operators, this creates a more challenging setup. Scale is still growing, but revenue is becoming less predictable. Simply pushing the handle higher is no longer enough to protect margins.

iGaming Maintains Structural Momentum

Digital growth continues to lead

iGaming continues to outperform all other verticals, generating $976.3m in February, up 25% year-on-year, with year-to-date revenue also increasing by 25.1%. This performance aligns with broader structural trends across the U.S. market, where total commercial gaming revenue reached $78.7bn in 2025, highlighting the accelerating shift toward digital channels, as outlined in U.S. Gaming Revenue Hits $78.7B in 2025, American Gaming Association Reports.

In 2025, iGaming reached $10.74bn, growing 27.6%, and in key states such as New Jersey, Pennsylvania, and Michigan, it has already surpassed land-based revenue. This trajectory highlights iGaming’s structural advantages, including higher margins, stronger retention economics, and an increasing share of total gaming revenue, which stood at 34.5% in 2025. For suppliers, this vertical remains the primary engine of growth across content, platform, and player engagement solutions.

Tax Leakage Is Becoming Harder to Ignore

Unregulated competition impact

Regulated operators generated $1.42bn in state taxes during February, up 10.5% year-on-year. But at the same time, the AGA has pointed to a growing amount of revenue shifting outside the regulated system.

Prediction-style markets alone are estimated to have diverted around $800m in potential tax revenue since 2025. Meanwhile, sweepstakes and skill-based products continue to operate in areas that aren’t taxed in the same way.

This creates an uneven playing field. Licensed operators are dealing with higher tax rates and stricter compliance requirements, while alternative models can operate with more flexibility. As states depend heavily on gaming tax income – especially for public spending – this imbalance is unlikely to go unaddressed for long.

Bottom Line

Shift from growth to sustainability

The U.S. gaming market is still growing, but the nature of that growth is changing. Land-based remains steady but offers limited expansion. Sports betting continues to scale, although margins are becoming more volatile. iGaming, meanwhile, is clearly establishing itself as the main growth driver.

For operators and suppliers, the focus is shifting. It’s no longer just about headline GGR – how that revenue is generated, and how sustainable the margins are, will matter far more going into 2026.

Source: American Gaming Association