U.S. Commercial Gaming Reaches Record $72B in 2024

American Gaming Association (AGA) released in May 2025.

The 2024 figures show that a majority of states experienced record-breaking revenue from commercial gaming. Of the 38 states with legalized gaming, 28 reported their highest earnings yet. Notably, North Carolina and Vermont ed the ranks by introducing mobile sports betting, which significantly boosted their state-level gaming revenue. The total tax revenue generated by commercial gaming in 2024 amounted to $15.9 billion, reflecting an 8.5% increase from the previous year, contributing to state and local economies across the nation.

Significant Gains from iGaming and Sports Betting

The surge in gaming revenue was propelled primarily by the rapid expansion of iGaming and legal sports betting. In particular, the sports betting market saw remarkable growth, with revenue jumping 24.8% to $13.78 billion. The overall amount wagered on sports in the U.S. reached an impressive $149.9 billion in 2024. This growth was spurred by the launch of sports betting in North Carolina and Vermont, marking significant milestones for the industry.

iGaming also experienced a notable rise, with a year-over-year increase of 28.7%, bringing the total revenue for seven active states (excluding Nevada’s online poker market) to $8.41 billion. Rhode Island’s successful launch of iGaming in March 2024 added to the momentum, marking the state’s entry into the online gaming arena and contributing $26.3 million to the overall total. Arizona, Connecticut, Illinois, and Michigan were among the states posting impressive gaming revenue increases, with gains ranging from 15.8% to 148% in some cases.

Mixed Economic Outlook but Optimism for Future Growth

Despite these gains, the economic outlook for the broader gaming industry in 2024 showed mixed signals. The Gaming Conditions Index (GCI) highlighted a contraction in economic activity within the industry during the first quarter of the year, though there were signs of renewed optimism. Gaming equipment manufacturers, for example, reported a more positive outlook, with increases in unit sales and capital investment—marking the first positive signs since the third quarter of 2023.

Many casino executives expressed cautious optimism regarding the future. While slightly more executives reported negative outlooks compared to positive ones, nearly half expected revenue growth to accelerate in the next six to 12 months. The “Gaming CEO Outlook” indicated that an uptick in capital investments was anticipated, with 41% of executives planning to increase their investment compared to just 19% who foresaw a decrease. The outlook was particularly positive for investments in hotel and food and beverage facilities.

However, the overall sentiment remained subdued, as many operators, including Wynn Resorts, expressed caution regarding the impact of ongoing tariffs from the previous istration. Despite these challenges, executives remain hopeful that the uncertainty surrounding tariffs and other economic factors, such as stock market volatility, will soon subside.

State-by-State Performance Variability

At the state level, gaming revenue performance was notably varied. While states like Iowa, and other states also experienced modest declines, underscoring the complex and often unpredictable nature of the gaming market.

As the commercial gaming sector continues to evolve, these fluctuations point to the broader challenges facing the industry, including economic pressures, changing consumer behaviors, and the ongoing impact of external factors such as tariffs and supply chain issues. However, despite these challenges, the overall trajectory of the commercial gaming market remains positive, buoyed by strong growth in key segments like sports betting and iGaming.

Looking Ahead: Optimism Amid Uncertainty

As the industry faces a range of economic hurdles, including rising tariffs and tightening financial market conditions, the longer-term outlook for the gaming sector remains promising. The AGA’s report highlights that while near-term economic challenges may test consumer spending, especially on discretionary activities, there is a broad expectation that conditions will improve in the future.

“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 report 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.”

Source:

U.S. commercial gaming reached another revenue record in 2024, cdcgaming.com, May 13, 2025