- Gaming revenue in the United States rose by 7.2% to hit $18.96 billion in Q3 of 2025.
- Traditional gaming recorded the most revenue in Q3, while iGaming recorded the most growth of all gaming verticals.
- The data shows that with expansions and technological innovation, gaming revenue in America could increase in the coming year.
The American Gaming Association (AGA) posted its revenue report, where gaming revenue rose by 7.2% year-on-year (YoY) to reach almost $19 billion. According to the AGA, this report from Q3 2025 is the 19th time that quarterly revenue rose YoY, and it is also the highest Q3 revenue ever recorded in American gaming.
Gaming is one of the most lucrative sectors in America’s entertainment industry, and since the start of 2025, states like Nevada, New Jersey, Pennsylvania, and Michigan have been breaking revenue records. This pattern has continued in Q3 2025.
Breaking Down The Numbers
The report also shows that online gaming and sports betting were the highest-gaining verticals in the gaming industry. Traditional gaming revenue increased by 3.5% to almost $13 billion, while sports betting and iGaming increased by 6.85% and 29.6% to $3.45 billion and $2.69 billion.
The gaming revenue for Q3 was affected by a slow September, where sports betting and brick-and-mortar casinos saw their revenue decrease YoY. Despite the dip, the overall Q3 report is impressive, indicating that there is still more room for growth in the industry.
Some of this growth is linked to how big the iGaming sector has become. More Americans like the convenience of playing online, so new casinos online keep entering the market. These newer platforms focus on players who want something a bit different from the big brands, with updated features and clearer reward systems.
Revenue From Casino Table Games and Slots
At the national level, the revenue from slots grew by 4.0% YoY while generating about $9.5 billion. Table games also grew 1.3% YoY and generated about $2.5 billion in revenue in Q3.
Land-based casinos saw their combined revenue increase by 3.5% to almost $13 billion. The revenue from these casinos grew YoY in July and also in August before shrinking in September.
Across the states, Nebraska, Virginia, and Illinois were the biggest gainers as 22 out of the 27 traditional casino markets saw their revenue go up on a YoY basis. Nebraska posted revenue growth of 63.5% while Virginia and Illinois recorded growth of over 35.5% and 20.4% respectively.
The sustained growth of traditional casinos shows that both online and traditional casinos can coexist and support the growth of the gaming sector and overall entertainment industry.
iGaming Continues to Expand
iGaming is one of the fastest-growing gaming verticals in America, and although some states have yet to legalize it, the data shows that they are missing out on significant revenue, which can be channeled in the form of taxes to benefit their economy.
In Q3, iGaming generated almost $3 billion from all seven states where it has been legalized. Compared to the revenue from Q3 2024, iGaming revenue grew by 29.6%. Out of all the seven states, Delaware gained the most as its iGaming revenue for Q3 grew by almost 89%.
With states like New Jersey, Pennsylvania, and Michigan setting new monthly records, total iGaming revenue in the country on a year-to-date basis stood at $7.82 billion, which is 29.7% higher than the revenue from Q1-Q3 2024. Pennsylvania broke its previous record of $238 million, which was set in March, by achieving $251 million in October. That record may also be broken in Q4.
Sports Betting Income Contracts Slightly
There was a sharp decline in sports betting revenue in September, and it caused the Q3 revenues for sports betting to contract slightly. The hold rate for sports betting in September fell to 8.36% while revenue declined by 21.15%.
Despite the weak performance in September, revenue from Q3 sports betting grew by 6.6% to reach a new record of $3.5 billion. Sports betting in Q3 also increased by 13.9% as the AGA reported that Americans spent $33 billion on sporting bets between July and September.
States With The Biggest Gains
Based on the commercial gaming revenue, 33 states saw their revenue increase in Q3. Some of the biggest gainers are Connecticut (24.6%), District of Columbia (23.7%), Illinois (17.0%), Michigan (18.2%), Nebraska (63.5%) and West Virginia (16.4%) while Oregon, Maine, North Carolina and Tennessee recorded declining revenues. The lowest was Oregon with 16.3% decline. The gaming sector in each of these states is good for their economy since it not only provides jobs to residents, but the state also generates taxes.
Revenue Generated from Taxes
An increase in revenue usually translates to an increase in tax payments, and in Q3, commercial operators paid about $4 billion in gaming taxes, which led to a 7.4% increase YoY. The taxes in this bracket exclude sports betting taxes and annual tax levies, which are paid to the national government.
What This Means For The Future
The gaming sector has faced some of the biggest regulatory challenges in 2025, but despite these challenges, revenue keeps increasing. This increase in revenue shows that the gaming sector has potential for the future.
Apart from being resilient, it also brings investments. Positive revenue number means that investors will be more open to backing operators and also introduce new innovations. These innovations would, in turn, lead to financial growth, which would push the gaming sector to break new revenue records.
Experts predict that with a strong finish in Q3, the total gaming revenue could cross $70 billion for the second year in a row. With brick-and-mortar casinos still leading the charge and more people warming up to online casinos, experts believe 2025 will end as a record-breaking year for gaming in America.
The 7.2% increase in Q3 revenue is a good sign for the gaming market in 2025. Lawmakers would need to focus on creating an enabling environment for the gaming industry to thrive and also attract more investment in the final quarter of 2025 and in 2026.
