U.S. iGaming Breaks Records in 2024 – Will 2025 Sustain the Momentum?

In 2024, the U.S. commercial gaming industry hit an all-time revenue high, reaching $72 billion, as reported by the American Gaming Association (AGA). This marks a 7.5% year-over-year increase and the fourth consecutive record-breaking year. While sports betting and iGaming drove the surge, economic warning signs suggest a more complex outlook for 2025.

A majority of this growth came from 28 out of 38 gaming states, each setting new records. The industry also returned $15.9 billion in combined state and local taxes, the highest ever. However, executive sentiment is shifting, with concerns about inflation, stagnant wages, and operational costs tempering expectations for the upcoming year.

2024 Gaming Growth Fueled by Sports Betting and iGaming

Sportsbooks led the charge in 2024, generating $13.78 billion in revenue—a 25% jump—driven by new markets in North Carolina and Vermont. Total sports betting handle surged to $149.9 billion. Meanwhile, legal iGaming reached $8.4 billion, up nearly 29%, despite being available in only seven states.

Rhode Island joined the iGaming market, adding $26 million in revenue. Traditional casinos, operating across 492 properties, brought in $49.89 billion—a modest 1% rise. Despite this, the Las Vegas Strip showed weakness, dropping 5% year-over-year in March and falling over 3% for the fiscal year to date.

Washington, D.C., posted the most dramatic increase in 2024 revenue—181.7%—after opening its sports betting market to competition. In contrast, Montana saw a 15% decline, and seven other states experienced slight downturns.

Cracks Appearing Beneath the Record Numbers

Despite headline growth, the AGA’s Gaming Industry Outlook Index reported a 0.9% contraction—the sharpest decline since the pandemic. The drop is linked to slowing wage growth, margin pressure, and fading executive confidence. In early 2025, 36% of surveyed leaders had a negative view of business conditions, while only 18% felt positive.

Labor and compliance costs remain top concerns. Many executives expect limited hiring and restrained wage increases throughout 2025. Regulatory demands and cybersecurity needs are adding additional financial strain.

Long-Term Views Remain Steady Despite Near-Term Doubts

While short-term confidence dipped, long-term sentiment remains cautiously optimistic. Over 80% of executives described their outlook as neutral, and only 4% had a negative long-term view. Encouragingly, 29% of respondents expect customer activity to grow in 2025.

Concerns over weak consumer demand have faded. Just 11% of executives cited demand as a limiting factor—half of what was reported the previous quarter. This suggests some resilience, even amid macroeconomic turbulence and recent tariff announcements.

2025: A Year of Adjustment for U.S. iGaming?

As economic headwinds pick up, the U.S. casino industry may face a turning point. While sports betting and iGaming continue to expand, traditional casino growth is slowing. The next phase could require agile adaptation, especially in emerging digital sectors.

With shifting market forces, rising operational costs, and potential consumer pullbacks, 2025 may challenge the sustainability of the industry’s post-pandemic surge. Yet with solid long-term expectations, there’s cautious hope that innovation in online gambling will help weather the storm.