The US commercial gaming industry reached a record $78.7 billion in gross gaming revenue (GGR) in 2025. It was a 9.2% increase over 2024, the American Gaming Association (AGA) reported in the latest Commercial Gaming Revenue Tracker.
That total generated $18.1 billion in tax revenue, up 15.1%, and the industry enjoyed gains in every major category. Sports betting and online gaming vastly outpaced traditional casino revenue.
“For another year, legal commercial gaming in the United States has delivered exceptional results for consumers, operators, and the communities we serve,” AGA President and CEO Bill Miller said.
“These record revenues and tax contributions demonstrate the broad appeal of regulated gaming markets and why strong state oversight remains essential as our industry evolves.”
Inside The Numbers
All of the country’s 38 commercial gaming markets saw annual revenue increases in 2025, according to the report.
- Traditional gaming: Generated $50.9 billion, up 2.3%, while contributing $11.3 billion in taxes, a 7.2% increase
- Sports betting: Revenue rose 22.8% to $17 billion on a total handle of $166.9 billion, an 11% jump. State-regulated sportsbooks generated $3.71 billion in taxes, up 32.4% year over year
- Online gaming: Produced $10.7 billion, rising 27.6%. That delivered $2.59 billion in taxes, a 36.9% increase.
These numbers do not include tribal gaming operations, which will be released later in the year.
Top States For Gaming
When looking at individual states, Nevada was the country’s largest market with $15.8 billion, an increase of 1.2%. That was followed by Pennsylvania, which grew 12.3% to $7.7 billion.
New Jersey checked in at No. 3 with $7 billion (up 10.1%), followed by New York at $5.7 billion (up 10.7%) and Michigan at $5 billion (up 20.1%).
Montana was the country’s smallest gaming market, generating $10.3 million in revenue, a year-over-year increase of 44.5%
Industry Still Faces Headwinds
While the AGA report paints a rosy picture for the gaming industry, some obstacles have developed over the last year. Nevada has seen a downturn in visitation recently and experienced a major revenue drop in January.
The effects of the One Big Beautiful Bill Act tax and spending bill may be having an impact on the industry as well. The law allows gamblers to deduct only 90% of losses, which could mean paying taxes despite a losing year. Bipartisan efforts to repeal the tax provision have so far come up short.
Additionally, prediction markets have become major competitors for traditional sportsbooks. States have battled the platforms in court in recent months and argue they circumvent state gaming laws.
Miller said the platforms operate without state oversight, are not subject to the same consumer protection and responsible gaming standards, and do not contribute tax revenue. The AGA estimates that prediction markets offering sports event contracts have siphoned more than $500 million in potential sports betting tax revenue to date.
“Sports betting belongs under state and tribal regulation,” Miller said. “That’s how consumers are protected and how communities share in the benefits.”
