The American Gaming Association’s (AGA) “State of the States” was released earlier this week. Beyond record casino gaming revenue numbers, the annual study reported huge gains for online gaming and sports betting.
That included a new record for iGaming revenue. This year’s report paints a rosy picture for sports betting and online gaming that included double-digit growth for both sectors.
The report details the commercial gaming industry’s financial performance, including analyses of all 38 states with a legal gaming landscape. Tribal gaming results aren’t included; those numbers are typically released by the National Indian Gaming Commission in June or July.
Sports Betting Surges
Since the Supreme Court overturned the virtual ban on sports betting outside of Nevada in 2018, a total of 39 states, Washington, D.C., and the American territory of Puerto Rico have legalized some form of sports wagering.
The latest revenue numbers from the AGA show the industry continues to see significant growth. In 2025, total revenue from commercial sports betting operations reached $16.89 billion, a 22.7% increase from 2024.
“Notably, the sports betting total does not include revenue earned by sportsbooks in tribal casinos or from mobile sports betting in Florida, which is also conducted as a form of tribal gaming,” the report said.
For example, the Seminole Tribe of Florida, which owns and operates the Hard Rock gaming brand, has an exclusive agreement to operate online sports betting in the Sunshine State.
Online Gaming Reaches All-Time Highs Despite Slow Expansion
While sports betting legalization has expanded quickly, online gaming has spread more slowly across the country. A total of seven states now offer legal online gaming – New Jersey, Pennsylvania, Michigan, Delaware, Connecticut, West Virginia, and Rhode Island. Nevada allows online poker only.
Revenue across the seven states with online casino gaming surged 27.6% to a record total of $10.73 billion. Delaware, Rhode Island, and West Virginia reported the strongest growth, but Michigan, New Jersey, and Pennsylvania once again accounted for almost 90% of the total.
Pennsylvania, which continues to report significant monthly growth, remains the largest market. Statewide revenue rose almost 28% in 2025 to $3.46 billion.
In Pennsylvania and New Jersey, total iGaming revenue surpassed commercial land-based casino revenue for the first time in 2025. Maine became the latest state to legalize online gaming in January but now faces a lawsuit to block the law.
Illegal Gambling Concerns
Despite the growth, the AGA pointed to concerns over illegal gambling in the US – both online and in underground live wagering venues. The trade group has also been a vocal critic of the growing prediction market industry.
The AGA reported that state and tribal governments in 16 states took action against these platforms in 2025. Five states (California, Connecticut, Montana, New Jersey, and New York) passed legislation to ban lot severely limit sweepstakes gaming. Arizona and Louisiana took action against sweeps platforms based on pre-existing laws, according to the AGA.
The report added: “Meanwhile, gaming regulators in states such as Florida, Michigan, Mississippi, and Tennessee continued to take action against illegal offshore sportsbooks and casinos, as policymakers and courts in Missouri, Pennsylvania, and Virginia also addressed the issue of unregulated devices offering unlicensed gaming under the guise of skill games.”
In August, the AGA released a new analysis showing that unregulated gaming devices, offshore sportsbooks, and illegal online casinos generate an estimated $53.9 billion in revenue annually, depriving states of more than $15 billion in lost tax revenue. That total does not include the many hundreds of millions in sports wagering tax revenue being lost due to sports event contracts offered through prediction markets.
