The American commercial gaming industry generated a record $78.7 billion in gross gaming revenue in 2025, a 9% increase from 2024, according to the American Gaming Association’s State of the States 2026 report. The record marks the sixth consecutive year of growth for the sector, driven by continued expansion of legal sports betting, rapid growth in online casino gaming, and steady performance from traditional land-based casinos.
Sports betting revenue grew 22.6% year over year to $16.9 billion, with Americans wagering approximately $167 billion in total bets — a figure that illustrates how mainstream sports wagering has become since the Supreme Court’s 2018 PASPA decision opened the door to state-by-state legalization. Online casino gaming, which remains legal in only seven states, generated $10.7 billion in 2025, a 27.6% annual increase.
Pennsylvania and New Jersey Hit Online Milestones
Two states reached a historic milestone in 2025: both Pennsylvania and New Jersey saw their online casino revenue surpass land-based casino revenue for the first time. Pennsylvania led all states with $3.46 billion in iGaming revenue, pushing it to the top of the national online casino rankings. New Jersey, the long-tenured leader in online casino gaming following its 2013 launch, saw a similar crossover for the first time.
These figures represent a structural shift in how Americans gamble, with digital channels increasingly displacing in-person play in states where both are legal. The data also underscores the enormous commercial opportunity in states that have not yet legalized online casino gaming. For bettors in live iGaming states, the competitive market has driven innovation and promotional spending from operators across the board.
What Comes Next for the Industry
The AGA report comes at a moment when the industry faces headwinds from several directions: the OBBBA’s 90% gambling loss deduction cap, ongoing tribal and state litigation over prediction markets, and growing legislative scrutiny of responsible gambling practices. Despite those challenges, the underlying growth trajectory of legal gambling in the United States remains strong. Pennsylvania sportsbooks and Pennsylvania casino apps continue to attract substantial player activity, and broader iGaming expansion bills are moving in several states, including New York and Illinois, that could add significantly to industry revenue totals in the coming years.
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