The U.S. commercial gaming industry had a remarkable year in 2024, breaking records for the fourth consecutive time, and 2025 is already shaping up to be another banner year.
According to the American Gaming Association’s State of the States 2025 report, the industry reached an all-time high, collecting $72.04 billion in revenue—a 7.5% increase over 2023.
This continued growth shows just how quickly the gaming market has expanded in recent years, and if 2025 is any indication, there does not appear to be a slowdown anytime soon.
What Fueled the Growth?
Before we get an idea of how 2025 is going so far, let's go over what drove the surge in revenue in 2024:
Traditional Casino Gaming: Classic slot machines, table games like blackjack, and in-person betting at over 490 commercial casinos brought in the largest share, reaching $49.89 billion—a modest but still record 1% jump from 2023.
Sports Betting: Legal sports betting continued its rapid expansion, bringing in $13.78 billion—a 25% rise from the previous year. Two states, North Carolina and Vermont, reported commercial gaming revenue for the first time after launching legal online sports betting.
iGaming (Online Casino Gaming): This segment saw the sharpest rise, with revenues up 28.7% to $8.4 billion. Only seven states currently have legal iGaming, but all have registered record monthly revenues, suggesting strong demand for digital gaming options.
Record Tax Benefits for States
The industry’s success didn’t just benefit casino owners—state and local governments received nearly $16 billion in gaming tax revenue, an 8.5% increase from the previous year. These taxes support schools, infrastructure, and public services in communities nationwide.
Top State Earners: Pennsylvania led all states with approximately $2.5 billion in gaming tax revenue, followed by New York with $2.3 billion. Despite tourism declines, Nevada rounded out the top three with $1.2 billion in 2024.
Out of 38 states that allow commercial gaming, 28 set new records for annual revenue in 2024, showing the broad popularity and reach of legal gambling across the country. The launches of legal sports betting in places like North Carolina and Vermont signal even more potential growth ahead. The number of states that offer legal online casinos is also expected to grow.
Why Is This Happening?
Several trends contributed to this record-setting year:
Legalization and Expansion: States are continually legalizing new forms of gaming, especially mobile sports betting and online casinos.
Consumer Demand: Americans are betting and gaming at record numbers, with technology making it easier to gamble from home or on the go.
Post-COVID Rebound: After shutdowns in 2020, the industry bounced back as consumers sought entertainment and states sought new tax revenues.
The U.S. commercial gaming industry set another high watermark in 2024. With expanding markets, new technologies, and growing public acceptance, it’s clear that gaming is now a major force in the American entertainment landscape—and an important source of funding for state and local governments.
2025 Gaming Numbers Aren't Letting Up
As of mid-2025, the U.S. gaming industry is on track to generate approximately $121.3 billion in total gambling revenue for the year, encompassing traditional casinos, sports betting, iGaming, and related segments, surpassing the $47.0 billion it was expected to generate in 2025.
From January to April 2025, commercial gaming revenue reached $25.11 billion, which was 6.2% ahead of last year's record-setting pace.
Thirty out of 37 reporting jurisdictions have posted a year-over-year increase in revenue, reflecting continued strength across most of the country.
Forecasts called for a 12% revenue increase in 2025 compared to 2024, driven largely by the strong performance of the digital sector, especially iGaming and mobile sports betting.
These digital segments reported exceptionally robust growth: iGaming sales increased by 27% in the first quarter alone, and total online gaming revenue for April 2025 expanded 10.9% year-over-year, with iGaming up 32.5%. While land-based casino growth has been slower (2.4% in April), the primary growth engine remains digital gaming and online sports wagering.
Industry sentiment remains generally optimistic, with most executives expecting revenue growth to accelerate in the coming 6 to 12 months. Consumer demand concerns have diminished significantly compared to 2024, and investment across casino hotels and digital offerings continues.
