US commercial gaming revenue reached $78.62 billion in 2025, up 9.1% year-on-year and marking a sixth consecutive record year for the industry, according to the American Gaming Association State of the States 2026 report. The figure reflects a regulatory framework that now spans 38 states plus the District of Columbia, with 37 of those jurisdictions reporting revenue growth and 34 plus DC setting all-time annual records.
The report, compiled with Vixio Regulatory Intelligence and released on 26 February 2026, documents an industry built on state-level rules rather than a single federal framework. Direct gaming tax payments to state and local governments reached $17.86 billion in 2025, up 12.3% from $15.91 billion in 2024. Mississippi was the only jurisdiction to record a decline, by less than one-tenth of a percent.
A patchwork built state by state
The US gaming framework operates without a single federal authorisation for commercial gambling. Each state sets its own rules for land-based casinos, sports wagering, and online gaming. At year-end 2025, the framework covered 493 commercial casinos in 27 states, 38 states plus DC with legal sports betting, eight states with legal iGaming (seven offering full online casino operations and Nevada permitting only poker, with Maine to become the eighth following 2025 legislation), and 537 tribal casinos in 29 states operating under separate federal-tribal compacts as reported by the National Indian Gaming Commission.
The breadth of this state-by-state approach produces sharp variation in tax rates, licensing fees, and operator eligibility. Pennsylvania charges 54% on online slot revenue. West Virginia charges 15% on all iGaming revenue. Nevada’s effective rate on poker is 6.75%. The same activity carries radically different economics depending on which state border it sits behind.
Historical revenue progression illustrates how quickly the framework has expanded. Total industry revenue first exceeded $40 billion in 2017, then $50 billion in 2021, $60 billion in 2022, $70 billion in 2024, and $78 billion in 2025. The acceleration coincided with the post-2018 expansion of legal sports betting after the US Supreme Court overturned the federal PASPA ban.
Commercial gaming revenue by state: 2024 vs 2025
The 38 jurisdictions with commercial gaming operations reported the following revenue figures, compiled by the AGA from state gaming regulatory agencies. All figures in US$ millions:
| State | 2024 | 2025 | YoY |
|---|---|---|---|
| Arizona | $707.7 | $838.7 | +18.5% |
| Arkansas | $720.4 | $742.6 | +3.1% |
| Colorado | $1,585.9 | $1,715.9 | +8.2% |
| Connecticut | $761.3 | $973.4 | +27.9% |
| Delaware | $554.5 | $632.9 | +14.1% |
| District of Columbia | $53.7 | $94.5 | +75.9% |
| Florida | $687.5 | $708.1 | +3.0% |
| Illinois | $2,922.4 | $3,420.3 | +17.0% |
| Indiana | $2,937.3 | $3,007.4 | +2.4% |
| Iowa | $1,912.2 | $1,956.2 | +2.3% |
| Kansas | $631.7 | $722.1 | +14.3% |
| Kentucky | $278.1 | $337.4 | +21.3% |
| Louisiana | $2,763.7 | $3,050.3 | +10.4% |
| Maine | $218.7 | $234.6 | +7.3% |
| Maryland | $2,611.5 | $2,740.1 | +4.9% |
| Massachusetts | $1,859.6 | $2,063.0 | +10.9% |
| Michigan | $4,193.9 | $5,037.9 | +20.1% |
| Mississippi | $2,433.8 | $2,433.6 | 0.0% |
| Missouri | $1,879.8 | $2,077.1 | +10.5% |
| Montana | $7.1 | $10.3 | +45.1% |
| Nebraska | $145.7 | $261.9 | +79.8% |
| Nevada | $15,606.4 | $15,798.3 | +1.2% |
| New Hampshire | $79.1 | $103.6 | +31.0% |
| New Jersey | $6,299.3 | $6,982.6 | +10.8% |
| New Mexico | $261.4 | $269.5 | +3.1% |
| New York | $5,170.3 | $5,724.8 | +10.7% |
| North Carolina | $583.6 | $734.6 | +25.9% |
| Ohio | $3,290.9 | $3,498.2 | +6.3% |
| Oklahoma | $153.0 | $164.6 | +7.6% |
| Oregon | $80.1 | $101.3 | +26.5% |
| Pennsylvania | $6,871.2 | $7,704.3 | +12.1% |
| Rhode Island | $711.1 | $745.3 | +4.8% |
| South Dakota | $151.9 | $158.2 | +4.1% |
| Tennessee | $573.3 | $700.2 | +22.1% |
| Vermont | $21.9 | $25.0 | +14.0% |
| Virginia | $1,417.1 | $1,815.1 | +28.1% |
| West Virginia | $878.8 | $1,008.7 | +14.8% |
| Wyoming | $22.8 | $27.4 | +20.0% |
| United States | $72,038.60 | $78,619.96 | +9.1% |
Five states crossed the $5 billion threshold in 2025: Nevada ($15.80bn), Pennsylvania ($7.70bn), New Jersey ($6.98bn), New York ($5.72bn), and Michigan ($5.04bn). The largest percentage gains came from Nebraska (+79.8%) and DC (+75.9%), followed by Montana (+45.1%) and New Hampshire (+31.0%). Connecticut (+27.9%), Virginia (+28.1%), Oregon (+26.5%), and North Carolina (+25.9%) also recorded growth above 25%.
Land-based casino framework
America’s 493 commercial casinos generated $51.06 billion in revenue from electronic gaming devices and table games in 2025, up 2.3% on the previous year. Revenue from slot machines reached $37.13 billion, up 2.9%. Table game revenue was $10.05 billion, down 0.9%.
Nevada remained the largest single state at $15.80 billion. The Las Vegas Strip generated $8.64 billion in 2025, broadly flat versus 2024. Casino markets serving Chicagoland and St. Louis grew on the back of new property openings in Illinois, while the Baltimore-Washington DC, Philadelphia, Detroit, and Boston markets all reported declines in land-based gaming revenue. Outside Nevada and Mississippi, which do not publish property-level numbers, Resorts World New York City in Queens remained the highest-grossing commercial casino-resort in the country. The Queens facility received a licence in December 2025 to add table games and a sportsbook as part of a broader redevelopment plan.
Licensing structures vary by state. Colorado allows unlimited commercial casino licences. Maine permits two. Pennsylvania charges $1.5 million every five years to renew a land-based casino licence. Virginia required a $15 million fee for an initial 10-year licence. Effective tax rates on electronic gaming device revenue span from 9% in South Dakota to between 71.85% and 74% in Rhode Island. Pennsylvania charges 55% on electronic gaming device revenue and 16% on table games.
iGaming: a $10bn segment across eight states
Online casino gaming remained one of the most fragmented segments of US gaming policy in 2025, even as it became the fastest-growing. iGaming revenue across the seven states with full online casino operations reached $10.73 billion, up 27.6% from 2024 and crossing the $10 billion threshold for the first time. Including Nevada’s online poker market, the segment now covers eight states.
Pennsylvania remained the largest market, with iGaming revenue rising nearly 28% to $3.46 billion, accounting for 32.2% of the nationwide total. Combined, Michigan, New Jersey, and Pennsylvania produced almost 90% of US iGaming revenue. Annual iGaming revenue surpassed land-based casino revenue in both Pennsylvania and New Jersey for the first time in 2025, an inflection point for the US market. Delaware, Rhode Island, and West Virginia reported the strongest percentage growth. Strong monthly growth has continued, with Michigan reporting iGaming revenue of $312.54 million in August 2025 alone.
Maine became the eighth iGaming state after passing legislation in 2025, though the framework did not take legal effect until early 2026. No other state authorised full iGaming during the year despite legislation being considered in Illinois, Maryland, New York, and others.
The licensing requirements illustrate the lack of a national standard. Pennsylvania charges an initial iGaming licence fee between $4 million and $10 million, with renewal at $250,000 every five years, and applies 54% on online slot revenue and 16% on online table games and poker, with unlimited “skins” permitted per licensee. New Jersey charges $400,000 initial and $250,000 annual renewal, applied a revised effective tax rate after legislative changes in 2025, and allows five skins per licensee. West Virginia charges $250,000 initial and $100,000 every five years, with a flat 15% tax rate and three skins. Michigan applies a graduated rate from 20% to 28% depending on revenue band. Connecticut limits operators to one skin at an 18% tax rate. Delaware and Rhode Island operate iGaming through their state lotteries with revenue-share arrangements that yield effective rates above 57% on online slots. Nevada permits only online poker, taxed at 6.75%.
Sports betting expansion enters a mature phase
Total commercial sports betting revenue reached $16.89 billion in 2025, up 22.6% on the prior year. The figure excludes revenue from tribal sportsbooks and from mobile betting in Florida, which operates under tribal authority. Total wagering handle climbed 11% to approximately $167 billion.
Missouri launched sports betting in 2025 following a November 2024 voter referendum. All 35 reporting commercial sports betting jurisdictions recorded revenue growth during the year. New York led the country at over $2.5 billion in sports betting revenue, accounting for nearly 15% of the national total. Illinois, New Jersey, and Ohio each surpassed $1 billion in sports betting revenue.
Online wagering continued to drive the growth pattern. New York’s market dominance reflects both its population scale and a 51% tax rate on online sportsbook revenue, the highest in the country alongside Rhode Island’s 51% state share. BetMGM Q3 results subsequently prompted the operator to raise its full-year 2025 guidance, reflecting strong US market conditions.
Sports betting tax rates differ sharply across jurisdictions. Nevada and Iowa apply 6.75%. New York and Rhode Island sit at 51%. New Hampshire and Delaware operate near 50% revenue-share arrangements. Illinois introduced a per-wager tax on online bets during 2025, layered on top of its existing 20% to 42% graduated revenue tax. Pennsylvania applies 36%. Massachusetts applies 15% on land-based and 20% on online. Tennessee remains the only state to tax handle rather than revenue, at 1.85%.
The federal excise tax of 0.25% on sports betting handle, plus a $50-per-employee fee, applies on top of state-level taxation. In 2025, the AGA secured an increase in the IRS slot jackpot reporting threshold from $1,200 to $2,000, the first adjustment since 1977.
Tax outcomes for state treasuries
Direct gaming tax revenue reached $17.86 billion in 2025, up 12.3% from $15.91 billion in 2024. Five states passed legislation during 2025 raising or restructuring online gaming tax rates: Louisiana, Maryland, and New Jersey increased iGaming and online sports betting taxes, while Illinois introduced its per-wager tax on online bets. State legislatures continued to scrutinise tax rates as iGaming and online sports betting matured.
Pennsylvania remained the leading state for direct gaming tax contributions, drawing on the highest tax rates in the country for online slot revenue and a 55% rate on land-based slots. New York followed closely, supported by its 51% online sports betting rate. The largest year-on-year tax revenue gains came in markets with newly launched operations and those that raised rates during the year.
Enforcement: prediction markets, sweepstakes, illegal sites
2025 was dominated by enforcement battles on three fronts: prediction markets, sweepstakes casinos, and offshore gaming sites. The AGA estimated that unregulated gaming devices, offshore sportsbooks, and illegal online casinos generate $53.9 billion in revenue annually, depriving states of more than $15 billion in tax revenue.
State and tribal governments in 16 states took action against prediction market platforms offering contracts based on the outcome of sporting events during 2025. Actions included cease-and-desist orders, lawsuits, and formal opinions declaring sports event contracts to be unauthorised sports wagering subject to state licensure. Massachusetts pursued legal action against prediction market operator Kalshi, filing a lawsuit alleging illegal sports betting operations. The AGA estimates prediction markets have diverted more than $500 million in potential sports betting tax revenue.
Five states (California, Connecticut, Montana, New Jersey, and New York) passed legislation during 2025 explicitly prohibiting sweepstakes gaming platforms that mimic online casinos or sportsbooks. Arizona and Louisiana enforced against sweepstakes operators under pre-existing laws. Gaming regulators in Florida, Michigan, Mississippi, and Tennessee continued to act against illegal offshore sportsbooks and casinos. Courts and lawmakers in Missouri, Pennsylvania, and Virginia addressed the legal status of electronic gaming devices marketed as games of “skill.”
Looking ahead
The 2026 outlook centres on the launch of Maine iGaming, continued battles over prediction markets, the operational launch of newly licensed casinos in Illinois and the New York City area, and legislative efforts to authorise iGaming in additional states. New York advanced the licensing of three full-scale casinos in the New York City area authorised under its 2022-23 state budget during 2025, with commercial operations not expected to commence for several years.
In a letter accompanying the report, AGA President and CEO William C. Miller, Jr. attributed the industry’s continued performance to consumer demand for regulated gaming:
These results are especially meaningful given the economic uncertainty that characterized much of 2025. They reflect the enduring appeal of legal, regulated gaming as a form of entertainment and the strength of the American blueprint for gaming that we have built together over decades.
Federal tax policy debates in 2026 will continue to test the AGA’s lobbying agenda. State legislative calendars across regulated and unregulated jurisdictions carry active bills on iGaming authorisation, sports betting tax adjustments, prediction market scope, and the legal treatment of skill-based gaming devices. Seven years after the Supreme Court overturned PASPA, the US framework continues to expand and differentiate at the state level rather than converge towards a national standard.
Source: Regulators reports by state, American Gaming Association
