The State of the States 2026 report estimates $17.86 billion in direct tax revenue from the sector and confirms growth across land-based casinos, sports betting and iGaming.
The American Gaming Association (AGA) has released its annual State of the States 2026 report, one of the benchmark documents for assessing the economic, regulatory and fiscal performance of the U.S. commercial gaming industry. The report confirms that the sector reached a new all-time high in 2025, with $78.62 billion in commercial gaming revenue, up 9.1% year-on-year.
Growth was recorded across all three major verticals covered by the AGA: land-based casinos, sports betting and iGaming. According to the report, 34 of the 38 jurisdictions with commercial casino, iGaming or sports betting operations, including the District of Columbia, posted annual revenue records in 2025.
Direct tax revenue also reached a new peak. Commercial gaming operators generated $17.86 billion in direct taxes for states, local governments and other beneficiaries, representing a 12.3% increase compared to the previous year. The AGA notes that this figure does not include corporate taxes, sales taxes, income taxes, payroll taxes or federal sports betting taxes.
The report confirms Nevada as the largest commercial gaming market in the United States, with more than $15 billion in revenue for the third consecutive year. Pennsylvania, New Jersey, New York and Michigan also exceeded $5 billion each, driven mainly by growth in iGaming and mobile sports betting.
In the land-based segment, the 493 commercial casinos operating across 27 states generated $51.06 billion in traditional casino gaming revenue, up 2.3% from 2024. The AGA highlights that online gaming and sports betting growth has not undermined the steady demand for brick-and-mortar casinos.
The Las Vegas Strip remained by far the largest commercial casino market in the country, generating $8.641 billion in 2025 revenue. It was followed by Atlantic City, Chicagoland, Baltimore-Washington D.C., and Queens/Yonkers. Outside Nevada and Mississippi, which do not disclose property-level data, Resorts World New York City remained the highest-grossing commercial casino.
Sports betting continued to be a major growth driver. In 2025, commercial sports betting revenue reached $16.89 billion, up 22.6% year-on-year. The AGA notes that this figure excludes tribal sports betting revenue and mobile betting in Florida, which operates under a tribal gaming model.
iGaming surpassed $10 billion in annual revenue for the first time across the seven states where online casino gaming is legal. The segment reached $10.73 billion, growing 27.6%. Pennsylvania remained the largest online casino market with $3.46 billion, and the report highlights that iGaming has already overtaken land-based casinos in both Pennsylvania and New Jersey during 2025.
One of the most significant sections of the report focuses on illegal and unregulated gambling. The AGA warns that in 2025 regulators and authorities were increasingly concerned about the expansion of unauthorized platforms, including sports event contracts, so-called prediction markets, sweepstakes casinos, offshore operators and unregulated skill-based gaming devices.
According to the report, state and tribal governments in 16 states took enforcement action against sports event contract platforms. In addition, California, Connecticut, Montana, New Jersey and New York passed new laws banning sweepstakes platforms that mimic online casinos or sportsbooks.
The AGA estimates that unregulated gaming devices, offshore operators and illegal online casinos generate $53.9 billion annually, depriving states of more than $15 billion in tax revenue. The association also warns that this estimate does not include losses linked to prediction market sports contracts.
The report also addresses responsible gaming and taxation. In 2025, the AGA launched its Play Smart From the Start platform, designed to help players make informed decisions before betting. At the same time, several states strengthened consumer protection and responsible gaming measures.
On taxation, the report highlights significant changes at both state and federal level. Louisiana, Maryland and New Jersey increased taxes on online sports betting or iGaming, while Illinois introduced a per-bet tax on mobile sports wagering. At the federal level, the withholding threshold for slot machine winnings increased from $1,200 to $2,000, although the AGA criticized the new rule limiting loss deductions to 90% of gambling winnings.
The report’s core message is clear: the regulated U.S. commercial gaming market continues to show strong growth potential, but faces increasing pressure from unregulated products and platforms. For the AGA, defending state and tribal regulation, consumer protection, responsible gaming and tax revenues will be the key themes shaping the debate in 2026.
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