The U.S. commercial gaming industry achieved a milestone in 2024, posting its highest-ever annual revenue for the fourth year running. According to the American Gaming Association’s (AGA) 2025 State of the States and Gaming CEO Outlook reports, total commercial gaming revenue reached $72.4 billion, a 7.5% increase from the previous year.

Sharp gains in iGaming and sports wagers:

The industry’s strong performance was largely fueled by continued iGaming and mobile sports betting growth. A total of 28 out of 38 jurisdictions with active commercial gaming operations set new annual revenue records. Among them were North Carolina and Vermont, which began reporting commercial gaming revenue for the first time following the rollout of legal mobile sports betting in 2024.

Revenue from online casino gaming reached $8.41 billion across seven states—excluding Nevada’s online poker-only market—marking a 28.7% year-over-year increase. Rhode Island, the most recent state to join the iGaming market in March 2024, contributed $26.3 million to that total. This marked the first new iGaming market entry since Connecticut launched in late 2021.

Meanwhile, sports betting continued its upward trajectory, generating $13.78 billion in revenue—up nearly 25% from 2023. Americans wagered a total of $149.9 billion legally on sports during the year. States such as Kentucky (+148%), Wyoming (+31.8%), and Virginia (+27.1%) were among those with the largest annual increases in gaming revenue.

However, some regions did report downturns. Montana experienced the steepest revenue drop at 15.6%, followed by New Mexico (-3.5%), Missouri (-2.1%), and Mississippi (-2%).

The record-setting revenue led to a corresponding surge in gaming-related taxes. In 2024, commercial gaming operators in the US contributed $15.91 billion in direct gaming taxes to state and local governments, marking an 8.5% rise over the previous year. This figure does not include other taxes paid by the industry, such as corporate, payroll, or federal excise taxes on sports betting.

Traditional casino games also continued to deliver strong returns, with revenue from these operations growing 1% to a record $49.89 billion across 492 commercial casinos in the country.

Executive outlook: optimism tempered by economic pressures:

Despite the industry’s strong performance in 2024, the AGA’s Gaming Conditions Index revealed a decline in economic activity in Q1 2025 compared to the same period in the previous year. Nonetheless, gaming equipment manufacturers reported renewed confidence in capital investment and product sales—marking the first positive outlook since Q3 2023.

The CEO Outlook survey indicated a cautiously optimistic sentiment among gaming executives. While more than 80% described their current business outlook as neutral, nearly half expected revenue growth to accelerate in the coming 6 to 12 months. Around 41% of executives planned to increase capital spending, particularly in hotel and food and beverage sectors, though interest in these areas slightly dipped compared to Q3 2024.

Consumer demand concerns have also waned. Only 11% of executives cited weak demand as a limiting factor in Q1 2025, down from 22% in Q3 2024. Notably, casino hotels reported higher demand for meetings and events, with request-for-proposal (RFP) volumes surpassing pre-pandemic levels and posting a modest 0.3% year-over-year increase.

Despite signs of resilience, broader economic pressures remain. The gaming sector continues to face uncertainty tied to tariffs, rising consumer prices, supply chain challenges, and tight financial conditions. The AGA report noted that these factors, alongside recent stock market volatility, could weigh on household discretionary spending.

Oxford Economics’ April 2025 baseline forecast does not predict a recession but expects some economic friction. Real disposable income is projected to grow 2.4% year-over-year by Q1 2026, yet real consumer spending on services may slow to 1.4%.

Still, long-term executive sentiment has improved. While only 14% expressed a positive near-term business outlook, nearly half anticipated better revenue growth in the coming months than in the previous year.