U.S. Sports Betting Revenues Rise to Nearly $17 Billion in 2025

• The American Gaming Association presented its 2025 U.S. commercial gaming revenue totals
• The U.S. commercial gaming industry reached a record high of $78.72 billion in gross gaming revenue
• U.S. sports betting saw a nearly 23% increase in revenues this past year

U.S. commercial gaming saw record-setting revenues in 2025 despite the rising threat of prediction markets, according to the American Gaming Association.

The American Gaming Association presented its 2025 gaming revenue report, announcing the commercial gaming industry reached a record-high of $78.72 billion in gross gaming revenue, a 9.2% increase over 2024 totals.

“For another year, legal commercial gaming in the United States has delivered exceptional results for consumers, operators, and the communities we serve,” said Bill Miller, President and CEO of the American Gaming Association. “These record revenues and tax contributions demonstrate the broad appeal of regulated gaming markets and why strong state oversight remains essential as our industry evolves.”

U.S. Sports Betting Continues To Grow

According to the American Gaming Association report, all 38 commercial gaming markets saw annual revenue increases in 2025. Traditional gaming generated $50.94 billion in revenue, up 2.3% compared with 2024, which contributed $11.33 billion in taxes.

Sports betting revenues rose to $16.96 billion in 2025, a 22.8% increase, with a total handle of $166.94 billion. U.S. sports bettors showed an 11% increase in total handle in 2025 when compared with 2024 totals. U.S. state regulated sportsbooks generated $3.71 billion in tax revenues, up 32.4% from the previous year.

Additionally. iGaming reached $10.74 billion in revenue, a 27.6% increase compared with 2024 totals. This generated $2.59 billion in taxes, a 36.9% increase for the year.

In total, legal, state-regulated gaming generated more than $18 billion in gaming tax revenue for the year, a 15.1% increase over 2024.

The U.S. commercial market saw the gains in revenue despite the rising popularity of the prediction markets, namely sports event contracts, within the last year.

Protecting Regulated Markets

Despite the growth, the American Gaming Association estimated that nearly $500 million in potential sports betting tax revenues were lost due to sports event contracts being offered in many states.

The American Gaming Association has been critical of the markets, describing them as unregulated sports betting which threaten the regulated state and tribal sports betting framework. The sports event contracts, the association notes, are not subject to the same consumer protection and responsible gaming standards, while not contributing tax revenues.

“With 2025 marking another record year, the industry’s performance reinforces a clear principle,” Miller said. “Sports betting belongs under state and tribal regulation. That’s how consumers are protected and how communities share in the benefits.”