US commercial gaming revenue nears $7B in October: AGA
U.S. commercial gaming revenue rebounded in October following a weaker September, with growth recorded across all major verticals, according to the Commercial Gaming Revenue Tracker of the American Gaming Association (AGA).
“U.S. commercial gaming revenue grew 17.0% year-over-year in October, reaching $6.81 billion with all three major verticals expanding,” the AGA said in its report released in December 2025.
The October performance reinforced expectations that 2025 will close as another record year for the legal commercial gaming sector. “Through the first ten months of 2025, total commercial gaming revenue stands at $64.30 billion, 8.7 percent higher than [the] same period last year [2024],” the report stated.
Data for the month showed traditional casino gaming generating $4.24 billion, sports betting $1.6 billion, and iGaming $968.7 million. The tracker also reported that each vertical posted year-on-year growth, supported by both mature and expansion markets.
Traditional casinos post best October on record
Brick-and-mortar casino gaming delivered its strongest October performance to date, with steady gains across slots and table games. The tracker noted that “Traditional casino gaming expanded by 5.0 percent, growing more than twice as fast as it did in October of 2024, making it the best October on record for commercial brick-and-mortar gaming.”
Slot machines remained the largest contributor to land-based revenue. Slot revenue reached $3.10 billion in October, representing a 3.7 percent increase year-over-year. Table games also outperformed the previous year, with revenue of $822.5 million and a 9.5 percent increase year-over-year.
At the state level, growth was widespread. “Nearly every state grew traditional gaming revenue in October. Expansion markets in Illinois, Virginia, and Nebraska, as well as double-digit revenue growth in New Jersey and Louisiana, drove the national performance higher,” the report said.
Sports betting rebounds as hold improves
Sports betting revenue surged in October after an unfavourable September, supported by more substantial operator margins and seasonal demand linked to football.
The report said that a key driver of the rebound was an improvement in sportsbook hold. According to the tracker, “After an unfavourable month in September, sportsbooks fared far better in October as hold increased 193 basis points, to 9.02 percent from 7.09 percent last October.” Over the year to date, profitability has remained elevated, with the report adding: “Year-to-date, the sports betting hold is 9.77 percent, up 29 basis points over the same period last year.”
iGaming continues to outpace land-based growth
Online casino gaming maintained its rapid expansion, once again outgrowing other verticals. “iGaming continued its rapid expansion, generating $968.7 million in October (+27.3%),” the tracker reported.
In several large states, online casino revenue has overtaken physical casino takings. “In Michigan, New Jersey, and Pennsylvania, iGaming surpassed brick-and-mortar revenue in both September and October,” the report said.
“Year-to-date through October, iGaming revenue in Pennsylvania and Michigan exceeds brick-and-mortar revenues,” it noted.
State tax revenues and policy implications
The AGA report said that regulated gaming continued to provide substantial funding for state programmes. According to the tracker, “Regulated gaming generated $1.54 billion in state gaming tax revenue in October and has produced $14.81 billion through the first ten months of the year for vital state programmes.”
However, the report also highlighted ongoing tax leakage from unregulated or differently regulated products. It stated: “This figure could be significantly higher but is impacted by operators of skill machines, ‘sweepstakes casino’ sites and those offering sports bets through event contract platforms, none of which pay state gaming taxes.”
The fiscal impact was quantified further: “Event contract platforms offering sports bets have cost state governments nearly $200 million in lost gaming taxes this year alone, depriving seniors, pension plans and responsible gaming programmes, among other victims, of roughly a $1,000 a minute while they remain active.”
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