US iGaming Crosses $10B as Online Revenue Beats Casinos in PA, NJ
The American Gaming Association confirmed on May 13 that US commercial gaming revenue reached a record $78.6 billion in 2025, the sector’s sixth consecutive year of growth. iGaming reached $10.73 billion across seven states, the first time the segment crossed the $10 billion mark, and for the first time, online casino revenue surpassed land-based commercial casino revenue in both Pennsylvania and New Jersey.
iGaming Hits a Structural Milestone
The seven-state iGaming market grew 27.6% to $10.73 billion, the fastest rate of any commercial gaming segment in 2025. Pennsylvania led with $3.46 billion, up nearly 28%, followed by Michigan and New Jersey. The three states combined accounted for approximately 90% of national iGaming revenue.
The crossover in Pennsylvania and New Jersey signals that online casino revenue can outgrow the physical casino floor in mature regulated markets. Delaware, Rhode Island, and West Virginia posted the strongest year-over-year growth rates despite smaller absolute figures. Maine approved iGaming legislation during 2025, which took effect in early 2026.
Commercial sports betting generated $16.89 billion in 2025, up 22.6% year-over-year, per the AGA. All 35 reporting jurisdictions recorded revenue growth. New York led nationally with $2.5 billion, roughly 15% of the total, while Illinois, New Jersey, and Ohio each exceeded $1 billion.
Land-Based Holds Steady, Not Growing
The 493 commercial casinos across 27 states generated $51.06 billion from slots and table games, a 2.3% increase. Electronic gaming devices outperformed, up 2.9%, while table game revenue fell by approximately 1%.
The Las Vegas Strip produced $8.6 billion but saw flat annual growth. Atlantic City ranked second at $2.9 billion. Outside Nevada and Mississippi, Resorts World New York City topped all commercial casino properties in the country.
Tax Revenue and the Illegal Market Problem
Gaming tax revenue paid to state and local governments rose 12.3% to $17.86 billion. The AGA reported the sector supports approximately 1.8 million jobs nationally.
The gains come alongside a serious threat from unregulated competition. The AGA estimated that illegal offshore sportsbooks, unlicensed online casinos, and unregulated gaming devices collectively generate around $53.9 billion annually, at a cost of over $15 billion in lost state tax revenue. Bill Miller, AGA President and CEO, said illegal betting “is increasingly encroaching on legal, state, and tribal-regulated operators.”
Prediction markets drew the most attention as an emerging competitive threat. The AGA’s Gaming Industry Outlook survey found that 81% of gaming executives ranked prediction markets as a major threat. Sixteen states took enforcement action against prediction market operators during 2025. Five states passed legislation that banned sweepstakes gaming products that replicate online casinos or sportsbooks: California, Connecticut, Montana, New Jersey, and New York.
The AGA’s Gaming Conditions Index showed real industry economic activity grew 1.5% year-over-year in Q1 2026. Executive sentiment reached 21.4% net positive, its strongest reading since Q3 2022. Over 60% of surveyed executives expect higher capital investment, stronger revenue, and improved balance sheet conditions over the next six to twelve months. Half expect AI to generate cost savings.
TGJ Take
The $10 billion iGaming milestone matters more to the B2B side of this industry than the $78.6 billion headline. When online casino revenue overtakes land-based in Pennsylvania and New Jersey, two of the largest US gaming states, it validates the market entry case European suppliers and technology suppliers have built for years. For any supplier that treats the US as a secondary priority, Pennsylvania is now your reference market. The illegal market at $53.9 billion exceeds combined legal iGaming and sports betting revenue. That gap will intensify regulatory pressure, and licensed operators should expect higher compliance costs ahead.
