The American Gaming Association’s State of the States 2026 report describes a commercial market that expanded across all three major regulated verticals in 2025, but not at the same speed.
The record in context
The AGA reported that all but one of the 38 jurisdictions with commercial casino gaming or sports betting increased annual revenue. Its summary says 34 states plus the District of Columbia set annual records. The Las Vegas Strip remained the largest commercial casino market even though its gaming-revenue growth was close to flat.
Traditional casino games generated US$51.06 billion across 493 commercial casino properties in 27 states, a 2.3% increase. That is still the largest part of the market. It is also the slowest-growing of the three broad categories presented in the report, underlining the difference between scale and growth rate.
Digital growth changes the composition
Commercial sports-betting revenue rose 22.6% to US$16.89 billion. The AGA notes that this total excludes sports betting in tribal casinos and mobile betting in Florida because it is conducted as tribal gaming. Regulated iGaming revenue in seven states increased 27.6% to US$10.73 billion.
Pennsylvania, New Jersey and Michigan continued to account for nearly 90% of national iGaming revenue. The report says regulated online-casino revenue exceeded commercial land-based casino revenue in Pennsylvania and New Jersey for the first time in 2025. That comparison does not mean their physical casinos contracted; it shows how quickly a legal digital channel can add scale in a mature market.
The 2025 record belongs to the whole commercial market, but the incremental dollar is increasingly influenced by regulated digital products.
Tax totals need a precise definition
The US$17.86 billion tax figure covers direct state and local taxes applied specifically to gaming activity. It does not include corporate income tax, sales tax, payroll tax, other general business taxes or federal sports-betting excise payments. Comparisons with broader public-revenue estimates must therefore use the same scope.
The faster 12.3% rise in direct gaming taxes relative to total revenue reflects the mix of growth and the different rates imposed by jurisdictions. A dollar of revenue is not taxed identically across land-based slots, tables, sports betting and iGaming, or across states.
Policy pressure grew with the market
The report also records expanding action against unregulated activity. It says state and tribal authorities in 16 states acted against sports-event prediction contracts during 2025, while five states enacted laws aimed at sweepstakes platforms. These descriptions reflect the AGA’s industry-policy framework; individual disputes remain subject to legislation, regulators and courts.
What to watch
- Whether traditional casino revenue continues to grow as new regional properties mature.
- How the limited number of legal iGaming states affects the national growth ceiling.
- Whether state tax changes shift the relationship between revenue and public receipts.
- How regulators and courts classify products at the boundary of gaming and financial markets.