The U.S. commercial gaming sector generated record revenue in 2025, driven by growth in sports betting and iGaming, according to new data from the American Gaming Association (AGA). Total gross gaming revenue (GGR) reached $78.72 billion, a 9.2 percent increase compared with 2024.

Revenue Growth Across Gaming Segments

Legal, state-regulated gaming also delivered $18.09 billion in tax revenue to state and local governments, representing a 15.1 percent year-over-year increase. These funds support public programs such as education, infrastructure and community services across the country.

“For another year, legal commercial gaming in the United States has delivered exceptional results for consumers, operators, and the communities we serve,” said Bill Miller, President and CEO of the American Gaming Association. “These record revenues and tax contributions demonstrate the broad appeal of regulated gaming markets and why strong state oversight remains essential as our industry evolves.”

Traditional casino gaming remained the largest contributor, producing $50.94 billion in revenue, up 2.3 percent from the previous year. That segment generated $11.33 billion in taxes, marking a 7.2 percent increase.

Sports betting posted stronger growth. Revenue climbed to $16.96 billion in 2025, a 22.8 percent rise, on total handle of $166.94 billion, up 11 percent. State-regulated sportsbooks paid $3.71 billion in taxes, reflecting a 32.4 percent year-over-year increase.

iGaming also expanded significantly. Revenue reached $10.74 billion, a 27.6 percent gain, while tax contributions totaled $2.59 billion, up 36.9 percent compared with 2024.

All 38 commercial gaming markets recorded annual revenue increases. According to the AGA, the results reflect sustained consumer demand for regulated gaming options.

During the association’s State of the Industry webinar, Miller acknowledged the strong financial performance but cautioned against complacency. “Overall, 2025 was another strong year, but at the AGA, we never take gaming success for granted,” he said.

Prediction Markets Draw Industry Opposition

Despite record revenue, the AGA renewed criticism of prediction markets offering sports event contracts. These platforms operate under federal oversight by the Commodity Futures Trading Commission (CFTC) and are not licensed or taxed at the state level in the same way as sportsbooks.

“The battle against prediction markets is a defining fight for our industry,” Miller said in the body’s press release. “Prediction markets threaten what I’ve long called the American blueprint for gaming.”

The AGA estimates that prediction markets have diverted more than $500 million in potential sports betting tax revenue. The association argues that state-based regulation ensures consumer protection, responsible gaming standards and local tax contributions.

“With 2025 marking another record year, the industry’s performance reinforces a clear principle,” Miller added. “Sports betting belongs under state and tribal regulation. That’s how consumers are protected and how communities share in the benefits.”

Former New Jersey Gov. Chris Christie, now advising the AGA, also addressed the issue. When asked about prediction markets entering the sports sector, he said his reaction was immediate: “My first reaction was it’s illegal.”

Christie criticized the platforms for operating outside state gambling frameworks. “It’s disrespectful of all 50 states; it violates the laws of all 50 states. And I think that over the course of time, either the courts or our political institutions are going to say, ‘This is not what we’ve bargained for,’” he said.

He further questioned whether sports event contracts fall within the CFTC’s mandate. “This is not a commodity,” Christie said. “This is a bet. Everyone knows what it is. It is a bet on a game, and it’s not a commodity. It’s not something that is even in their ballpark to regulate.”

Prediction market operators, including Kalshi and Polymarket, argue they operate legally under federal regulation. Several states have challenged the legality of these contracts in court, while the CFTC has supported prediction market companies in certain legal disputes.

The AGA has positioned itself in opposition to this expansion, emphasizing the state-by-state regulatory model. Miller stated that the trust built under that framework gives the industry confidence moving forward. “We’re not just protecting what we’ve built, we’re securing the foundation for continued growth and a better future for gaming,” he said.