US gaming revenue was record $72 billion in 2024

Record Growth in the U.S. Gaming Industry: Will Economic Uncertainty Impact 2025?

The American Gaming Association’s (AGA) latest *State of the States* revenue report reveals that the U.S. commercial gaming sector achieved a remarkable $72 billion in revenue for 2024, marking a 7.5% increase over 2023. This figure not only signifies sustained growth but also establishes a new all-time record for the fourth consecutive year, demonstrating resilience amid the lingering effects of the Covid-19 pandemic and ongoing economic challenges.

Out of 38 states participating in commercial gaming, 28 reported individual record revenues last year, according to the AGA. The industry’s contributions to state and local tax revenue totaled $15.9 billion—an 8.5% year-over-year (YoY) increase. Notably, this figure excludes federal excise taxes collected from sports betting operators and other standard corporate taxes.

The report highlights that 15 states experienced double-digit YoY revenue growth in 2024, with an additional two states registering a 9% increase. Washington, D.C. emerged as the standout performer, soaring 181.7% after transitioning from a sports betting monopoly to a competitive market environment.

Conversely, eight states witnessed revenue declines, with five recording decreases of 2% or less. Montana, the smallest market with only $7.1 million in revenue, experienced the largest reduction at -15%.

Performance by Vertical

In 2024, commercial casino revenue reached a record $49.89 billion, a slight increase of 1% from the previous year, generated by a total of 492 facilities across the U.S. Sports betting revenue surged by 25% to $13.78 billion, bolstered by the introduction of two new markets: North Carolina and Vermont. Overall, the handle for the year amounted to an impressive $149.9 billion.

Legal online gaming revenue across seven states surged by 28.7%, reaching $8.4 billion, buoyed by Rhode Island’s launch—the first new market since Connecticut in late 2021. This total does not include Nevada, which currently offers only online poker.

The disparities in growth among various gaming verticals are noteworthy. While retail gaming revenues have shown marginal growth or even declines, sports betting and iGaming have experienced significant increases. In fact, all seven iGaming states achieved monthly revenue records in March, while revenue on the Las Vegas Strip decreased by 5% YoY, reflecting a fiscal year decline of over 3%.

Near-Term Gaming Outlook: Caution Ahead

Despite the record revenue figures, the AGA’s Gaming Conditions Index indicates some concerns ahead. The index, which measures real economic activity within the gaming sector, showed a decline of 0.9% YoY—the largest contraction since the pandemic. Factors such as weaker real wages, slightly negative sentiment, and below-average revenue growth contributed to this downturn.

A survey of 28 executives from AGA member companies revealed an aggregate sentiment of -5.6% for the quarter, indicating that a greater share of respondents provided negative feedback regarding the business outlook than positive. This showing marks a shift from the previous survey, which reported -8.7% in Q3 2024.

Critically, Q1 2025 marked a historic first where more executives reported negative business conditions than positive—36% versus 18%. Despite optimism surrounding capital investments, hiring and wage growth expectations remain subdued. Key areas expected to pressure profit margins include employee wages and benefits, alongside ongoing regulatory and tax challenges.

Future Outlook: Signs of Optimism

Looking ahead, long-term projections appear more encouraging. Over 80% of executives remain neutral about the long-term outlook, with only 14% expressing positivity and a mere 4% expressing negativity.

Furthermore, executive sentiment regarding future customer engagement has improved, reaching its highest level since Q1 2022, with 29% of executives anticipating an uptick in customer activity. Notably, only 11% of executives identified insufficient customer demand as a limiting factor, compared to 22% previously in Q3 2024.

The survey was conducted between March 25 and April 8, capturing sentiments before and after the tariff-related market fluctuations seen in early April. Some gaming companies experienced notable stock dips before regaining stability, while most CEOs have thus far downplayed adverse economic impacts during Q1 earnings calls.

“AGA member companies are navigating a landscape where consumer discretionary spending faces pressures from tariffs on imported goods and volatility in the stock market,” the AGA notes. “However, despite the current near-term uncertainty, the longer-term outlook remains more favorable, reflecting confidence that these economic challenges can be resolved in due course.”