US iGaming Revenue Hit $10.73 Billion in 2025 — What It Means for Players

The headline number, in context

Across the states with a legal, regulated online casino market, iGaming revenue reached $10.73 billion in 2025 — a 27.6% increase over the prior year, according to the American Gaming Association's State of the States 2026 report. That growth also delivered $2.59 billion in state tax revenue, up 36.9%. For 2026, the AGA projects the market will grow further, to somewhere between $10.5 and $11 billion.

Note: this $10.73 billion figure is specific to legal online casino (iGaming) revenue — it's a different, narrower number than the AGA's broader commercial gaming figure ($78.7 billion for 2025), which includes land-based casinos and sports betting as well.

What this number does — and doesn't — measure

"iGaming revenue" specifically means gross gaming revenue from real-money online casino products — slots, table games, and similar — in the states where that market is legally regulated. It excludes sports betting handle, which the AGA tracks as its own category, and it excludes land-based casino revenue, which is where most of the broader $78.7 billion commercial gaming figure comes from once sports betting and iGaming are added back in. The $10.73 billion iGaming number is smaller and more specific by design — it's the clearest available read on how the newest, fastest-growing slice of the legal gambling market is actually performing, separate from sportsbooks and physical casino floors.

It's also a seven-state number, not an eight-state one. Maine became the 8th state to legalize real-money online casino gaming in January 2026 (see our related coverage below), but its law took effect after the 2025 revenue period this report covers, and the state's online casinos aren't expected to go live until later in 2026 at the earliest. Next year's State of the States report should be the first to include Maine's contribution to the national total.

Which states are driving the growth

Michigan, New Jersey, and Pennsylvania together still account for nearly 90% of the nationwide iGaming total, with Pennsylvania the single largest market — statewide revenue grew nearly 28% to $3.46 billion in 2025. But the fastest percentage growth came from the smaller markets: Delaware, Rhode Island, and West Virginia all posted the strongest year-over-year gains. West Virginia in particular has been setting monthly revenue records through 2026, including $39.54 million in May after $38.3 million in April. Michigan, despite being one of the three largest markets by dollar volume, didn't post the fastest growth rate — a reminder that market size and growth rate are two different signals, and a state can be a top earner while newer, smaller markets grow faster off a lower base.

A milestone: online overtakes land-based, in two states

The most notable structural shift in the 2025 numbers: annual iGaming revenue surpassed commercial land-based casino revenue in both Pennsylvania and New Jersey for the first time. That's a meaningful signal about where player behavior is heading in mature iGaming markets — it's not just growth, it's a shift in where the majority of casino spending actually happens.

The growth trend behind the headline number

Simple back-calculation from the 27.6% year-over-year growth rate implies the seven-state iGaming market was worth roughly $8.4 billion in 2024 — meaning it added more than $2 billion in a single year. State tax revenue grew even faster, up 36.9% to $2.59 billion, outpacing growth in gross revenue itself. That gap generally signals that growth is concentrated in states with higher effective tax rates on iGaming — Pennsylvania, the largest market, taxes online slots revenue well above the rate some newer iGaming states charge — though the AGA report doesn't break out the exact state-by-state tax mix behind that number.

What 27.6% growth signals for players

Fast-growing, increasingly tax-generating markets tend to draw more regulatory attention and more competition among licensed operators — both generally good for players, since operators compete harder on trust, game selection, and player experience rather than just raw acquisition spend. It's also a reminder that this is a genuinely large, fast-growing regulated industry, not a niche one — which is exactly why verifying who's actually licensed and operating legally matters more, not less, as the market grows.