U.S. iGaming Records in 2024 – What to Expect for 2025

The U.S. commercial gaming industry posted another record-breaking year in 2024, reaching $72 billion in revenue, according to the American Gaming Association’s (AGA) annual State of the States report released Tuesday. The figure marks a 7.5% increase over 2023 and the fourth consecutive year of all-time high revenue.

While the numbers reflect continued growth across several verticals—particularly sports betting and iGaming—the AGA also reported a noticeable cooling in executive sentiment and business conditions heading into 2025. With inflationary pressures, wage stagnation, and broader economic volatility on the horizon, the industry may face its first real test since emerging from the COVID-19 pandemic.

A Banner Year Across Most States

Of the 38 states with legal commercial gaming in 2024, 28 set all-time revenue records. Combined, the industry contributed $15.9 billion in state and local tax revenue—a record high and an 8.5% year-over-year increase, not including federal excise or corporate taxes.

Fifteen states posted double-digit annual revenue gains, and two more were just shy at 9%. The most dramatic change came from Washington, D.C., where gaming revenue surged 181.7% following the end of a local sports betting monopoly and the introduction of a competitive market. However, eight states saw revenue decline in 2024. Montana, the smallest market at just $7.1 million, registered a 15% drop—the largest in the country. Five other states posted marginal declines of 2% or less.

Sports betting and iGaming continued to outpace traditional casino revenue in growth. Sportsbooks pulled in $13.78 billion in revenue, up 25% year-over-year, buoyed by market launches in North Carolina and Vermont. Total betting handle reached $149.9 billion. Legal iGaming, available in only seven states, grew 28.7% to $8.4 billion. Rhode Island became the first new iGaming market since 2021, contributing $26 million. Meanwhile, traditional commercial casinos brought in $49.89 billion across 492 facilities, representing a modest 1% increase from the previous year.

While all iGaming states posted monthly revenue records in March, the Las Vegas Strip—a barometer for in-person casino health—was down 5% year-over-year that month and has declined over 3% for the fiscal year to date.

Cracks in the Foundation?

Despite robust topline numbers, the AGA’s Gaming Industry Outlook survey and Gaming Conditions Index pointed to emerging signs of strain. The Index, which tracks real economic activity across the sector, contracted 0.9% year-over-year—its steepest drop since the pandemic.

This downturn was attributed to weakening real wages, flat revenue growth in some segments, and declining executive confidence. In the first quarter of 2025, 36% of surveyed executives reported a negative view of current business conditions, compared to just 18% who viewed them positively. This marked the first time since the survey's inception in 2021 that negative sentiment outpaced optimism regarding present conditions.

Hiring expectations and wage growth also appear muted, with many respondents citing labor costs, regulatory changes, and data protection demands as key pressures on margins in the coming year.

Long-Term Optimism Holds

While short-term confidence has slipped, longer-term sentiment remains more stable. Over 80% of executives described their long-term business outlook as neutral, with only 4% expressing negativity. More than a quarter (29%) expected customer activity to increase in the coming year, a notable improvement from prior quarters.

Concerns over insufficient consumer demand—a prominent issue in late 2024—have faded. Just 11% of executives cited it as a limiting factor in Q1 2025, down from 22% in the previous quarter. The survey, conducted between March 25 and April 8, overlapped with market volatility following the so-called “Liberation Day” tariff announcements. While several gaming companies saw temporary stock declines, most downplayed lasting impacts during first-quarter earnings calls.

“Like others, AGA member companies face a landscape where consumers’ discretionary activities will be tested by tariffs on imported goods and stock market setbacks,” the AGA noted. “However, even as near-term executive views have darkened, their longer-term outlook is more positive, reflecting hope that the current uncertainty will be resolved sooner than later.”

Even as near-term executive views have darkened, their longer-term outlook is more positive, reflecting hope that the current uncertainty will be resolved sooner than later.

Conclusion

The U.S. commercial gaming sector closed out 2024 with record-setting momentum, but early indicators in 2025 point to a more complicated picture. As traditional casino growth slows and economic pressures mount, the sustainability of the industry’s post-pandemic boom may depend on its ability to adapt—especially in the fast-evolving arenas of sports betting and iGaming. Whether that adaptability is enough to withstand near-term headwinds remains to be seen.