Record-Breaking Gambling Losses: The Continuous Boom in US Commercial Gaming
Sky-high Gaming Income Hits $72 Billion, Bumps Up Tax Revenues to Peak Levels
In a Groundbreaking announcement on May 14, 2025, it's been revealed that gamblers in the United States shed a staggering $72 billion to commercial operators last year. This marks the third consecutive year that commercial gaming revenue has hit a record high.
Fast forward seven years since the United States Supreme Court's historic repeal of the federal ban on sports betting, the commercial gaming industry has skyrocketed. The Supreme Court's decision legalized single-game wagering, paving the way for sportsbooks and online betting to bring an influx of new gamblers onto the scene.
This year's record-breaking revenue of $72 billion shows a 7.5% increase from 2023, according to the American Gaming Association's (AGA) 2025 "State of the States" report. The increased revenue also meant a significant hike in state taxes, which totaled an all-time high of $15.9 billion, an 8.5% year-over-year increase.
Bill Miller, the AGA's President and CEO, noted that the "unprecedented success" of the industry is due to the explosion of online markets for both sports betting and iGaming, leading to a third consecutive record year for the commercial casino sector. Furthermore, Miller emphasized that more Americans than ever before have access to, and are choosing, the legal, regulated gaming market.
It's estimated that over half of American adults participated in some form of gambling in 2024, with 45% visiting a physical gaming property. While iGaming is currently legal in only seven states, 34 states allow for online sports betting.
An Explosive Emergence of Online Gaming and Sports Betting
The expansion of gambling, spearheaded by sports betting but also involving new states legalizing commercial brick-and-mortar casinos, has made gambling a more appealing form of entertainment than ever before. Once confined to destinations like Las Vegas and Atlantic City, gambling is now experiencing a surge in popularity and perceived acceptance.
Although brick-and-mortar casino revenue has remained relatively stagnant in recent years, online sports betting and iGaming revenue has exploded. In 2024, iGaming revenue rose 29% to $8.4 billion, and the industry kept almost $13.8 billion of players' bets, an increase of 25% from 2023.
An Increasing Embrace of Gambling in Modern Society
With the rise of gambling, more and more people are encountering advertisements for gambling products on a weekly basis. Recent studies suggest that approximately 9 in 10 US adults see such advertisements at least once a week.
As society increasingly accepts gambling, Miller, the AGA's CEO, believes that Americans are coming to appreciate the industry's focus on operating responsibly and generating tangible economic benefits for local communities. These positive views are believed to be the building blocks of the industry's credibility with the public, regulators, and lawmakers alike.
However, the gamble is not without its risks. Recent challenges include economic uncertainties and inflation. Despite these hurdles, Miller remains hopeful about the industry's long-term prospects, predicting that real disposable income will grow by 2.4% by Q1 2026.
The commercial gaming industry is poised for continued growth, driven by developments in online gaming and sports betting, and the ever-more-liberal attitude towards gambling in the United States. And while gamblers may experience record losses, the industry's upward trajectory shows no signs of slowing down.
- The American Gaming Association (AGA) reported a record commercial gaming revenue of $72 billion in 2024, marking the third consecutive year of such record-breaking figures.
- Online sports betting and iGaming, as noted by Bill Miller, the AGA's President and CEO, have played a significant role in the industry's successful expansion.
- In 2024, iGaming revenue increased by 29% to $8.4 billion, with online sports betting now legal in 34 states.
- While brick-and-mortar casino revenue has remained relatively stagnant, the online sports betting and iGaming sectors have seen a surge in revenue.
- The AGA's 2025 "State of the States" report shows that the increased revenue led to a significant hike in state taxes, totaling an all-time high of $15.9 billion.
- More than half of American adults participated in some form of gambling in 2024, with 45% visiting a physical gaming property.
- With the expanding gambling industry, the AGA's CEO, Bill Miller, believes that the industry's focus on responsible operation and bringing tangible economic benefits to local communities is resonating positively with the public, regulators, and lawmakers.
