U.S. Commercial Gaming Revenue Reaches Record $78.7 Billion in 2025, Sparking Major Tax Contributions

In an impressive showcase of growth, the U.S. commercial gaming industry has reached monumental success in 2025, with gross gaming revenue (GGR) soaring to $78.72 billion—a staggering 9.2% increase compared to the prior year. This astonishing outcome underscores the resilience and expansion of legal gaming across the nation. Notably, the industry also generated an eye-opening $18.09 billion in gaming taxes, reflecting a commendable 15.1% growth year-over-year, crucial for funding state and local infrastructures, as well as educational initiatives.

According to the American Gaming Association (AGA), such remarkable progress is indicative of the industry’s broad appeal and the need for robust state oversight to maintain its evolution. Bill Miller, the AGA's President and CEO, remarked on the achievements, noting that the continuous growth in revenue and tax contributions reinforces the positive impact of regulated gaming on consumers, operators, and the communities they support.

Breaking down the sources of this revenue, traditional gaming emerged as a significant contributor, generating $50.94 billion. Despite a modest growth rate of 2.3%, it accounted for $11.33 billion in tax revenue—a 7.2% increase. This sector remains a cornerstone of the gaming industry, demonstrating steady consumer engagement and support.

Meanwhile, the sports betting segment witnessed outstanding growth, generating $16.96 billion—a remarkable increase of 22.8% fueled by a total handle of $166.94 billion, which saw an uptick of 11%. The state-regulated sportsbooks played a pivotal role in this sector, bringing in $3.71 billion in tax revenue, a significant leap of 32.4% compared to the year before. This highlights the surging popularity of sports betting as a mainstream form of entertainment and legal gaming activity.

Additionally, iGaming made substantial strides, reaching a revenue of $10.74 billion, which represented a substantial 27.6% growth. This area also translated into $2.59 billion in taxes, marking a noteworthy 36.9% increase, emphasizing the robust demand for online gaming platforms.

As impressive as these gains are, the AGA has raised concerns regarding the rise of online prediction markets that operate without state and tribal regulations. These platforms pose a threat to consumer safety standards and the integrity of the gaming ecosystem. Miller points out that such unregulated markets can divert significant tax revenues, estimating that they have siphoned off over $500 million in potential sports betting tax revenue thus far.

The overarching sentiment among industry leaders is that sports betting should remain under stringent state and tribal regulation to ensure consumer protection and fair distribution of benefits to local communities. As the year 2025 encapsulates another extraordinary chapter in the U.S. commercial gaming landscape, it sets a precedent for the ongoing evolution of regulated gaming and its enduring contributions to society.

Topics Entertainment & Media)

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