Table of Contents
U.S. commercial gaming revenue hit a record $78.72 billion in 2025, up 9.2% year-over-year, according to the American Gaming Association’s Commercial Gaming Revenue Tracker. All 38 commercial gaming markets reported annual revenue increases, with gaming tax contributions rising 15.1% to $18.09 billion.
Segment Breakdown
Traditional gaming generated $50.94 billion, up 2.3%, contributing $11.33 billion in taxes — a 7.2% year-over-year increase.
Sports betting revenue jumped 22.8% to $16.96 billion on a total handle of $166.94 billion, up 11.0%. State-regulated sportsbooks generated $3.71 billion in taxes, a 32.4% increase on the prior year.
iGaming was the fastest-growing segment, up 27.6% to $10.74 billion, with tax contributions of $2.59 billion — a 36.9% increase. The segment’s performance mirrors operator-level results reported earlier this year, including Caesars Entertainment’s record digital growth in Q4 2025 and BetMGM’s record $2.8bn full-year revenue.
“For another year, legal commercial gaming in the United States has delivered exceptional results for consumers, operators, and the communities we serve.” — Bill Miller, President and CEO, American Gaming Association
Prediction Markets: A Growing Regulatory Problem
The AGA’s release came with a sharp warning on prediction markets. The association estimates that platforms offering sports event contracts outside state and tribal regulatory frameworks have diverted more than $500 million in potential sports betting tax revenue to date.
“These platforms operate without state oversight, are not subject to the same consumer protection and responsible gaming standards, and do not contribute tax revenue.” — American Gaming Association
The warning reflects a broader regulatory flashpoint developing across multiple states. New Jersey lawmakers introduced a bill this week seeking to ban prediction markets and require sports event contracts to comply with existing betting law. The AGA’s position echoes concerns raised by gaming industry leaders and state regulators who argue that prediction market operators are accessing the same consumer base as licensed sportsbooks without equivalent oversight or tax obligations.
For context on how that competitive pressure is playing out, DraftKings — the largest US online sportsbook by revenue — delivered its best-ever quarter in Q4 2025 while simultaneously pursuing prediction market authorisations of its own, having launched in 38 states by December 2025.
Tax Contribution Trajectory
The 15.1% jump in total gaming tax contributions to $18.09 billion underscores the fiscal argument state regulators and the AGA are deploying against unregulated prediction market platforms. With iGaming taxes alone rising 36.9% to $2.59 billion, the fiscal cost of diverting even a fraction of that activity to unregulated channels is quantifiable at scale.
“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.” — Bill Miller, President and CEO, American Gaming Association
Miller’s framing sets up the AGA’s 2026 lobbying position clearly: continued record performance is the industry’s evidence that the regulated model works, and prediction markets represent a direct threat to both the tax base and consumer protections that model delivers. The $500 million diversion figure will likely be central to the association’s arguments in state legislatures throughout the year.
Source: American Gaming Association
