16 May 2026
U.S. Gaming Industry Hits Record $78.62 Billion in 2025 Revenue
The American Gaming Association released its annual State of the States 2026 report and the numbers tell a clear story of expansion across multiple segments of the industry. Commercial casino gaming generated $78.62 billion in total revenue during 2025 which represents a 9.1 percent increase from the previous year. Growth appeared across land-based casinos, sports betting, and internet gaming while 34 of the 38 regulated states plus the District of Columbia each posted new single-year records.
Revenue Breakdown Shows Broad Strength
Land-based casinos produced $51.06 billion of the overall total and remained the largest single contributor even as newer channels gained ground. Sports betting added $16.89 billion which marked a 22.6 percent rise year-over-year while internet gaming reached $10.73 billion for a 27.6 percent increase. Observers note that these three categories together accounted for every dollar of the reported growth and that the combined figure pushed the industry past its prior peak without relying on any one segment to carry the load.
Tax Collections Reach New Levels
State and local governments collected $17.86 billion in direct gaming tax revenue during the same period. That sum reflects the higher volumes reported in both traditional casino floors and the rapidly expanding online and sports betting markets. Data from the report shows that tax receipts tracked closely with the 9.1 percent revenue increase which suggests operators maintained consistent tax compliance even as volumes rose.
State-Level Records Highlight Nationwide Trend
Thirty-four states plus the District of Columbia established new annual revenue benchmarks in 2025. The pattern holds across both mature markets such as Nevada and New Jersey and newer jurisdictions that only recently legalized sports betting or online casino play. Researchers tracking the sector point out that the breadth of record-setting states indicates the growth was not concentrated in a handful of large markets but instead spread through the regulated landscape.
Illegal Market Remains a Notable Factor
The report also estimates that illegal gaming activity generated $53.9 billion during 2025. That figure sits outside the regulated system and represents an ongoing point of focus for state regulators and industry groups. The American Gaming Association has previously linked such activity to lost tax revenue and consumer protection gaps and the 2026 edition continues to flag the size of the unregulated market relative to the legal total.
States that have expanded legal options in recent years continue to see shifts in player behavior toward regulated platforms yet the report indicates that the illegal sector still captures a substantial share of overall activity. Figures reveal that continued enforcement efforts and consumer education campaigns remain part of the policy conversation in multiple jurisdictions.
Looking Ahead in 2026
By May 2026 state legislatures in several markets were already reviewing the new revenue data to inform upcoming budget and regulatory decisions. Lawmakers in states that set records used the numbers to project future tax collections while others examined how further expansions might affect both legal and illegal segments. The report supplies the baseline data these discussions rely on and industry participants continue to monitor legislative calendars for any changes that could influence 2026 results.
Key Takeaways from the Data
- Total commercial gaming revenue reached $78.62 billion in 2025.
- Sports betting grew 22.6 percent and internet gaming grew 27.6 percent.
- Land-based casinos still generated the majority of revenue at $51.06 billion.
- Tax collections totaled $17.86 billion across reporting jurisdictions.
- Thirty-four states plus D.C. set new annual records.
Conclusion
The State of the States 2026 report documents a year of continued expansion for the regulated U.S. gaming sector with clear contributions from every major category and broad geographic participation. Tax receipts rose in line with revenue while the persistent scale of the illegal market remains a reference point for future policy work. The figures provide a factual snapshot that state officials, operators, and analysts will reference throughout the remainder of 2026 and into the next reporting cycle. State of the States 2026 data continues to serve as the primary source for tracking these industry-wide trends.