The U.S. commercial gaming industry posted another record-breaking quarter, with Q2 2025 gross gaming revenue (GGR) reaching $19.44 billion, according to the American Gaming Association (AGA). The figure marks a 9.8% year-over-year increase and the eighth consecutive quarter of GGR growth.
Breakdown by Vertical
The Q2 total includes revenue from land-based casinos, riverboats, racinos, sports betting, and iGaming, but excludes tribal gaming, lotteries, offshore platforms, and unregulated skill games.
| Vertical | Q2 Revenue | YoY Growth |
|---|---|---|
| Retail Casino (Slots/Table Games) | $12.82B | +2.8% |
| Sports Betting (Retail & Online) | $3.92B | +20.6% |
| iGaming (Slots, Tables, Poker) | $2.6B | +32.3% |
Online casinos—legal in just seven states—continue to outperform expectations, while sportsbooks posted their best Q2 ever.
“U.S. commercial gaming revenue growth accelerated in the second quarter with continued growth across all verticals,” the AGA noted.
Top-Performing States
Five states surpassed $1 billion in Q2 commercial gaming revenue. All five offer legal online sports betting, and three—Pennsylvania, New Jersey, and Michigan—also support legal iGaming.
| State | Q2 GGR | YoY Growth |
|---|---|---|
| Nevada | $3.85B | +0.3% |
| Pennsylvania | $1.91B | +16.1% |
| New Jersey | $1.73B | +14.6% |
| New York | $1.45B | +11.1% |
| Michigan | $1.2B | +18.3% |
Of the 38 states with commercial gaming, nearly all reported growth—North Carolina being the lone exception, as it currently only permits sports betting.
Mid-Year Snapshot & Industry Outlook
With $38.43 billion in GGR through the first half of 2025, the industry is on pace to surpass last year’s record of $72 billion. Year-to-date growth includes:
- Traditional Casino GGR: +2%
- Sports Betting Win: +16.5%
- iGaming Revenue: +29.7%
Despite concerns in Las Vegas, most major markets continue to expand.
Emerging Disruption: Wagering Exchanges
A growing concern for regulators is the rise of prediction markets and wagering exchanges like Kalshi, Polymarket, and Robinhood, which offer contracts on game outcomes and player props. These platforms argue that their products—regulated federally as derivatives—can be offered nationwide, potentially bypassing state-level sports betting laws.
