US commercial gaming operators generated $78.72bn in GGR during 2025, a 9.2% annual increase according to the American Gaming Association.
US commercial gaming operators generated $78.72bn in GGR during 2025, a 9.2% year-on-year increase according to figures published by the American Gaming Association (AGA).
State-regulated gaming activity produced $18.09bn in tax receipts, a 15.1% rise compared with 2024, with funds allocated to education, infrastructure and other public programmes.
AGA President and CEO Bill Miller said the latest results show sustained consumer engagement with legal gaming channels and demonstrate the strength of regulated frameworks.
He noted that the scale of revenue and associated tax payments underscores the need for continued state-level oversight as the sector develops.
Land-based casino gaming remained the largest contributor, accounting for $50.94bn in revenue, up 2.3% from the prior year. Taxes generated by traditional casino operations totalled $11.33bn, an increase of 7.2%.
Sports wagering revenue reached $16.96bn, climbing 22.8%, while total handle rose 11% to $166.94bn. State-regulated sportsbooks delivered $3.71bn in tax revenue, up 32.4% year over year.
Online casino gaming recorded $10.74bn in revenue, reflecting 27.6% growth, and contributed $2.59bn in taxes, a 36.9% increase. Each of the 38 commercial gaming jurisdictions reported annual revenue gains in 2025.
The AGA also raised concerns about prediction market platforms offering sports-related contracts beyond established state and tribal regulatory systems.
According to the association, more than $500m in potential sports betting tax revenue has shifted to these markets.
Industry data from Kalshi, Polymarket and other platforms showed that trading volume tied to Super Bowl LX surpassed $1.6bn.
A substantial share of that activity, however, involved proposition-style markets, including certain lines on the Super Bowl half time show, that are not widely available through conventional sportsbooks.
Miller asserts: “Sports betting belongs under state and tribal regulation. That’s how consumers are protected and how communities share in the benefits.”
New gambling tax proposals could impact future growth
Several states are reassessing their tax structures, which could also hamper growth.
In Illinois, the introduction of a progressive tax rate of up to 40% and a per-wager fee of $0.25 to $0.50 in July 2025 led to a 15% year-over-year decline in total bets placed during the autumn.
While overall handle initially held steady as bettors shifted to fewer, larger wagers, broader softness emerged by year’s end.
House Bill 5143, introduced this month, seeks to repeal the per-bet fee by July amid concerns that higher costs could push players toward unregulated offshore sites.
Other mature markets have experienced similar pressure. Ohio doubled its sports betting tax rate from 10% to 20% in 2024. Although handle continued to rise, sportsbook revenue declined as operators reduced promotional spending.
In Pennsylvania, where the tax rate stands at 36%, analysts linked a 10% handle drop in early 2026 to lower promotional reinvestment compared with lower-tax states.
Looking ahead, additional increases are under consideration. Ohio Gov. Mike DeWine proposed raising the rate to 40% in the 2026-2027 budget cycle, but couldn’t find support.
A bill introduced in 2025, which has become stagnant, sought a 2% increase in the tax paid on the betting handle.
Massachusetts lawmakers are weighing Senate Bill 302, which would lift the online betting tax to 51% and restrict certain wager types and VIP programmes.
New Jersey has approved a 19.75% rate for FY2026, while West Virginia legislators introduced HB 4398 to raise the sportsbook tax to 25%.
In New York, where the rate is already 51%, a 2026 proposal would allow for a potential reduction if more operators are licensed.
In the absence of finalised legislative increases, the near-term results won’t likely be impacted.