AGA Reports Record $78.72 Billion Gross Gaming Revenue in 2025 as Industry Thrives
In 2025, America’s commercial gambling industry achieved unprecedented growth despite challenges like tariffs and a decline in tourism, reporting a gross gaming revenue (GGR) of $78.72 billion, marking a 9.2% increase compared to the previous year.
Growth in Gaming Revenue and Tax Contributions
This impressive revenue surge resulted in approximately $18.9 billion in gaming tax payments benefiting state and local funding for education, infrastructure, and other essential public services, representing a 15.1% growth according to the American Gaming Association (AGA).
Bill Miller, president and CEO of the AGA, highlighted the significance of these results, emphasizing the value legal commercial gaming brings to consumers, operators, and communities, while underscoring the importance of strong regulatory oversight as the industry advances.
Segment Performance Highlights
The AGA detailed the performance across various segments, noting that traditional gaming experienced moderate growth. This segment generated $50.94 billion in revenue, a 2.3% increase, and contributed $11.3 billion in taxes, up by 7.2%.
In contrast, the relatively smaller iGaming sector grew substantially, delivering $10.74 billion in revenue—an increase of 27.6%—and generating $2.59 billion in taxes, which rose by 36.9%.
Sports betting remained a strong growth driver, producing $16.96 billion in revenue, a 22.8% rise, with a total betting handle of $166.94 billion, an 11% increase. Tax revenues from sports betting reached $3.71 billion, reflecting a 32.4% increase from the prior period. This data indicates sustained expansion for traditional sports betting despite emerging market segments.
Concerns Over Prediction Markets
The AGA has expressed reservations about the impact of prediction markets, particularly those offering sports event contracts, which operate largely outside established state regulatory frameworks. These platforms typically lack state oversight, consumer protection, and responsible gaming standards, and do not contribute tax revenue.
According to the AGA, such unregulated markets pose risks and their presence is a growing concern within the industry, prompting calls for more stringent state and tribal regulations to protect consumers and ensure that communities benefit from gambling activities.
Industry Dynamics and Future Outlook
Despite declaring 2025 another record year, the industry faced internal disagreements over the stance on prediction markets. Major operators like DraftKings, FanDuel, and Fanatics decided to leave the AGA, reportedly due to conflicting views regarding this issue.
Some experts, however, challenge the notion that prediction markets threaten traditional sports betting’s growth or competitiveness, suggesting that both can coexist in the evolving gambling landscape.
