US commercial gambling revenue reached a record $78.62 billion in 2025, according to the latest annual report from the American Gaming Association. That total was up 9.1% from the previous year, reflecting continued expansion across both land-based and digital gambling markets.
The report found that growth was widespread across the country. Among the 38 states with commercial gaming, along with the District of Columbia, 34 jurisdictions posted new annual revenue records. Mississippi was the only market to report a slight decline, and even there the drop was minimal. The stronger industry performance also lifted public revenue, with direct gaming taxes paid to state and local governments rising to $17.86 billion, an increase of 12.3% year over year.
Regional results were mixed
The Las Vegas Strip remained the largest commercial gaming market in the United States, although its annual growth was nearly flat. Other regions showed more noticeable movement. New casino openings in Illinois helped boost results in the Chicagoland and St. Louis areas, while several mature East Coast markets, including Philadelphia, Detroit, Boston, and the Baltimore-Washington corridor, recorded declines in traditional casino revenue.
Even with those regional slowdowns, some major properties continued to lead the market. Resorts World New York City remained the top-grossing commercial casino in the country, followed by MGM National Harbor and Borgata Hotel Casino and Spa.
Online gambling was a major growth engine
Internet gaming delivered some of the strongest gains of the year. iGaming revenue increased 27.6% to a record $10.73 billion. Although legal online casino play is still limited to seven states, the segment continues to grow rapidly.
Pennsylvania remained the largest iGaming market, generating more than $3.46 billion in annual revenue. The report also noted a milestone in 2025: for the first time, iGaming revenue surpassed revenue from traditional land-based casinos in both Pennsylvania and New Jersey.
Illegal gambling continues to drain tax revenue
Despite the strength of the regulated market, the report warned that illegal and unregulated gambling remains a major issue. Offshore sportsbooks, unauthorized gaming machines, and illegal online casinos are estimated to produce about $53.9 billion in annual revenue. According to the report, that activity deprives states of roughly $15 billion in potential tax income.
The study also pointed to prediction market platforms as a growing concern. Since early 2025, those platforms may have reduced potential state tax collections by nearly $800 million.
Outlook for 2026
Industry leaders remain cautiously positive about the year ahead. While growth in mature land-based markets may be leveling off, the continued rollout of sports betting and the possibility of additional iGaming legalization could support further gains in the broader US gambling market.
