U.S. Commercial Gaming Reaches New Heights with Record Revenue in 2025

The American Gaming Association released its annual State of the States 2026 report in early 2026, and the numbers paint a clear picture of continued expansion across the commercial gaming sector, while digital platforms accounted for much of the momentum that carried total revenue to $78.6 billion for the full year 2025.

That figure represented a 9.1 percent increase over the previous year and marked the sixth straight annual record for the industry, according to data compiled in the report. Growth arrived even as operators navigated shifting regulatory environments and uneven performance across different segments of the market.

Digital Platforms Drive the Bulk of Gains

Online offerings posted the strongest results, with iGaming revenue climbing 27.6 percent to reach $10.7 billion, while sports betting increased 22.6 percent to $16.9 billion. These two categories together contributed the majority of the overall year-over-year lift, reflecting broader consumer adoption of mobile and internet-based wagering options that have become available in more jurisdictions.

Operators noted that streamlined app interfaces and expanded event coverage helped attract new participants, particularly in states where mobile betting launched relatively recently. The report shows that digital channels now represent a substantial and growing share of total commercial gaming activity nationwide.

Land-Based Casinos Show Steady but Slower Growth

Traditional casino floors recorded more modest gains, rising 2.3 percent for the year. This segment continued to generate the largest absolute dollar volume, yet its pace lagged behind digital competitors as some patrons shifted portions of their activity to online platforms.

Regional differences remained evident, with certain markets experiencing stronger foot traffic while others faced competition from newly opened sportsbooks or online alternatives. Land-based properties have responded by enhancing amenities and integrating digital features that allow guests to place bets from within the casino environment.

Sports Betting Continues Geographic Spread

Legal sports betting now operates in 38 states, up from previous years as additional legislatures finalized frameworks and tribal compacts took effect. The report highlights how this expansion has created new revenue streams while also prompting discussions around tax rates, integrity standards, and responsible gaming measures.

States that approved sports betting earlier in the decade generally posted the highest absolute wagering volumes, though newer markets demonstrated rapid uptake once apps and retail locations became operational. The pattern suggests continued potential for further state-level adoption in coming years.

Hiring Remains Flat Despite Revenue Increases

Despite the revenue growth, employment levels across the commercial gaming sector stayed essentially unchanged. The report attributes this stability to productivity gains from technology investments and operational efficiencies that allowed companies to handle higher volumes without proportional staff increases.

Some operators redirected resources toward technology and marketing roles rather than traditional floor positions, reflecting the evolving mix of digital and physical offerings. Industry observers continue to monitor whether sustained revenue growth will eventually translate into broader hiring in future reporting periods.

Regulatory Environment Presents Ongoing Considerations

The State of the States 2026 report also addresses regulatory pressures that vary by jurisdiction, including debates over tax structures, advertising rules, and consumer protections. These factors influence how quickly operators can expand and how they allocate capital across markets.

States with mature regulatory systems tended to see more predictable growth trajectories, whereas jurisdictions still refining their rules experienced slower rollouts or adjustments mid-year. The report notes that clarity in these areas often correlates with stronger investment activity from both established companies and new entrants.

Conclusion

The American Gaming Association's findings confirm that commercial gaming maintained its upward trajectory through 2025, led by digital segments while land-based operations grew at a steadier pace. With sports betting now legal in 38 states and regulatory discussions ongoing, the sector enters the remainder of 2026 positioned for further evolution. Data from the State of the States 2026 report provides a benchmark for tracking these developments as they unfold.