The American Gaming Association (AGA) reported another record year for gambling, as both traditional and online sectors posted growth, despite some declines in the last quarter attributed to sports betting and favourable game results.
In the AGA’s State of the Industry 2025 report published today (19 February), annual gaming revenue grew for the fourth consecutive year to $71.92 billion (£57.13 billion/€69 billion), up 7.5% year-on-year.
The AGA expects that when tribal gaming revenue is reported by the National Indian Gaming Commission (NIGC) later in the year, total US gaming revenue for 2024 will “approach” $115 billion.
Slot-machine revenue in 2024 was $36.06 billion, an increase of 1.6%. Table-game revenue fell by 1.7% over the course of the year to $10.14 billion. In total, traditional casino slots and table games took in $49.78 billion.
In-person gaming, consisting of casino slots, tables and retail sports betting, accounted for $50.32 billion of industry revenue last year.
However, in December, revenue fell by 2% to $6.16 billion when compared to the previous year. This was attributed to lower sports betting revenue and a low hold rate.
The AGA reported that gaming taxes in 2024 were $15.66 billion, paid to local and state governments. The trade group stated that this is an increase in paid tax of 8.5% compared to the previous year. The AGA noted that this figure does not include annual fees or the federal sports betting excise tax.
Igaming generated $8.40 billion for the industry in 2024, growing 28.7% year-on-year.
Total online gaming, including sports betting and casino, accounted for 30% of the sector’s earnings at $21.54 billion. Online gambling revenue increased by 24.6% year-on-year.
AGA VP Dave Forman noted that three states – New Jersey, Michigan and Pennsylvania – made up the “vast majority” of igaming revenue in 2024. Seven US states have legal online casino and those three are the largest.
Speaking in a press call today, AGA CEO Bill Miller stated the issue of cannibalisation of retail casinos by online casinos remains a key discussion point. He said there is “evidence to be pointed to on both sides”.
However, he added that “there is an appreciation at the state level that this impacts and affects the brick-and-mortar casinos and that therefore these [state] legislatures are proceeding with caution, which is appropriate.”
Sports betting
US consumers placed $147.91 billion in wagers on sports in 2024, up 23.6% on the previous year. Of that, the AGA reported that 95% was done online.
Sports betting revenue grew to $13.71 billion, up by 25.4% when compared to 2023.
In the last quarter of the year, sportsbook hold percentages were volatile as favourable customer bets came into play. Betting hold dropped to 6.1% from 9.8% in the previous period. Unfavourable bet outcomes had been reported by many operators during recent earnings.
New York remained the largest sports betting market in 2024 at $2.08 billion, an annual increase of 23%.
While Illinois overtook New Jersey to come in second at $1.21 billion, up 21.1%. New Jersey posted sports betting revenue of $1.14 billion, growing by 14.2%.
States and markets
The Las Vegas Strip still remains the industry’s top commercial revenue grosser. However, it posted a 4.4% decline year-on-year to $8.51 billion.
Atlantic City’s revenue dropped by 1.7% to $2.84 billion, leaving the region to hold the second position of top commercial casino earners in 2024.
Only four markets in the top ten posted growth in 2024. Chicagoland was up 2.6% to $2.24 billion, Baltimore-Washington, DC grew 0.6% to $2.10 billion, Queens/Yonkers was up 2.5% to $1.58 billion and while Detroit was up 4.5% to $1.29 billion.
Chicagoland’s growth was boosted by property developments, while Detroit overcame labour disputes that had affected its 2023 back-end.
Looking forward and towards the Trump administration, Miller said the AGA had previously been “frustrated” with the lack of action against illegal operators by the US attorney general.
“We’re hopeful that as we start with the new administration, that as they have seen a strong and robust sports betting industry grow, that we’re treated like every other legal business and that is that we’re protected,” he said.
“So increased enforcement around illegal operations that exist both within the inside the borders and shores of the US, as well as utilising the assets in law enforcement overseas is a high priority for us. We are hopeful that the administration will prioritise them.”
Conor Reynolds
Read More