U.S. Commercial Gaming Revenues Hit New Heights in 2025 as AGA Releases State of the States Report

The American Gaming Association released its annual State of the States 2026 report on May 12, and the document lays out how commercial gaming operations across the country posted record revenues for the full calendar year of 2025. Commercial sports betting alone produced $16.89 billion in revenue, which represents a 22.6 percent increase compared with the prior year, while the broader commercial casino sector crossed the $78 billion threshold for the first time. Observers who track these markets point to steady expansion in both land-based and online channels as the primary drivers behind those totals. Data from teh report shows that sports betting continued its climb as more states brought regulated markets online or expanded existing ones. The year-over-year growth of 22.6 percent reflects higher handle across major operators and a larger number of active bettors in jurisdictions that legalized the activity earlier in the decade. Those figures reveal consistent demand even as average hold percentages remained relatively stable.

Sports Betting Revenue Breakdown and State Performance

Figures in the State of the States 2026 report break down sports betting revenue by state and by product type. Mobile and online platforms accounted for the majority of the $16.89 billion total, although retail sportsbooks located inside casinos and racetracks still contributed meaningful volume in states such as Nevada, New Jersey, and Pennsylvania. Analysts who reviewed the numbers note that states with mature regulatory frameworks tended to post the largest absolute revenues, while newer markets showed faster percentage growth as they built player bases from scratch.

Tax collections tied to these revenues also rose in tandem. State governments received hundreds of millions of dollars in direct taxes and fees, which in many cases funded education programs, infrastructure projects, or regulatory enforcement offices. The report lists per-state tax rates ranging from single-digit percentages to more than 50 percent in certain jurisdictions, illustrating the wide variety of approaches lawmakers have taken since the 2018 Supreme Court decision opened the door to broader legalization.

Overall Commercial Casino Gaming Surpasses $78 Billion

Commercial casino gaming, which includes slot machines, table games, and other non-sports offerings, generated more than $78 billion in revenue during 2025. That total combines results from destination resort casinos in states such as Nevada and New Jersey with regional and racetrack casinos that operate in the Midwest and Northeast. Revenue from slots remained the largest single category, yet table games and poker rooms posted solid gains as well, particularly in markets where operators introduced new game variations or improved player rewards programs.

The report tracks how visitation patterns and average spend per visitor contributed to the overall increase. Many properties reported higher occupancy rates and stronger non-gaming revenue streams from hotels, restaurants, and entertainment venues, all of which help support the core gaming floor. Data indicates that integrated resorts continued to outperform standalone gaming facilities on metrics such as revenue per available room and total guest spend.

Regulatory Actions Target Prediction Markets and Sweepstakes Gaming

Beyond revenue statistics, the State of the States 2026 report documents enforcement actions taken in 16 states against prediction market platforms. Regulators in those states issued cease-and-desist orders or filed civil complaints alleging that certain event contracts fell outside authorized gaming categories. Court filings referenced in the report show ongoing litigation that will likely shape how similar platforms operate going forward.

Five additional states passed or advanced new legislation aimed at sweepstakes gaming operators. Lawmakers in those jurisdictions cited concerns over consumer protection and tax fairness when they introduced bills that either ban or heavily restrict sweepstakes-style contests tied to casino-style games. The report summarizes the key provisions of each new law and notes the effective dates that operators must meet when adjusting their offerings.

Looking Ahead to Continued Market Evolution

Those who follow the industry see the 2025 revenue numbers as evidence that regulated commercial gaming has reached a new scale. The combination of established casino markets and expanding sports betting options created a larger overall footprint than existed just a few years earlier. At the same time, the enforcement actions and legislative changes described in the report demonstrate that regulatory frameworks continue to adapt as new products enter the marketplace.

The American Gaming Association compiled the State of the States 2026 report using data submitted by member companies and public filings from state gaming control boards. Readers can access the full document through the association’s website for detailed state-by-state tables and methodology notes.

Conclusion

The May 12 release of the State of the States 2026 report provides a clear snapshot of commercial gaming performance throughout 2025. Record revenues in both sports betting and traditional casino segments, coupled with ongoing regulatory developments around prediction markets and sweepstakes products, illustrate an industry that continues to grow while facing fresh legal and legislative questions. Observers note that future editions of the report will likely track how these trends evolve as additional states consider legalization measures and as courts issue rulings on pending enforcement cases.