America’s commercial gaming industry generated a record $78.7 billion in 2025, but 2026 is revealing a shift beneath the headline growth.
Sports betting slowed sharply through much of the first half before receiving a World Cup-driven boost in July. Online casino revenue, meanwhile, has continued posting double-digit gains, strengthening the case that iGaming could become a more important source of future industry growth.
The contrast was particularly clear in the second quarter. Sportsbook revenue slipped 0.2% even as bettors wagered 7.8% more, meaning operators kept a smaller share of the money staked. iGaming revenue rose 16.5%, helping total US commercial gaming revenue reach $40.48 billion through June.
July provided some relief for sportsbooks. American Gaming Association data showed sports betting revenue jumping 27% year over year to $1.27 billion, helped by betting around the World Cup. Yet iGaming also maintained its momentum, rising 15.7%.
Rather than sports betting stopping growing altogether, the emerging picture is one of a maturing sportsbook market alongside consistently strong online casino growth.
The Evolution of the US Gambling Market
The modern sports betting boom began in May 2018, when the Supreme Court cleared the way for individual states to legalize wagering on their own terms.
Eight years later, locally licensed sportsbooks are operating across most of the country.
That expansion transformed how Americans bet. Wagering moved from a relatively limited collection of retail locations to mobile apps sitting alongside banking, streaming and sports scores on customers’ phones.
In 2025 alone, bettors wagered $166.9 billion through regulated commercial sportsbooks. After paying winning bets, operators recorded nearly $17 billion in revenue.
Sports betting was one of the industry’s fastest-growing areas, but it was not the only source of digital growth.
Online Gambling Has Accelerated Industry Revenue
A state-by-state GamblingSites.com analysis shows how quickly gambling revenue increased in several states after online wagering became available.
Michigan, for example, launched iGaming and mobile sports betting in 2021. Its gambling revenue climbed from $638 million in 2020 to $4.19 billion by 2024.
Connecticut’s total increased almost tenfold after introducing both verticals, while Tennessee, despite having no commercial brick-and-mortar casino market, grew from $27 million to $573 million.
Digital gambling now represents a substantial share of the wider industry.
In 2025, mobile sportsbooks generated 96.5% of sports-betting revenue, while sports betting and iGaming together accounted for 34.5% of all commercial gaming revenue, up from 30% a year earlier.
| Segment | 2025 gross gaming revenue | Annual growth |
| Traditional casinos | $50.94 billion | +2.3% |
| Sports betting | $16.96 billion | +22.8% |
| iGaming | $10.74 billion | +27.6% |
Source: American Gaming Association Commercial Gaming Revenue Tracker for calendar 2025.
The difference between sports betting and iGaming partly comes down to how often customers can use each product.
A sports bettor needs an event to wager on, sometimes a specific game or market. Online casino customers can access slots or table games whenever the platform is available.
That distinction becomes more important as sportsbook expansion reaches more mature markets.
Maine Shows Why iGaming Expansion Takes Time
Sports betting is already available across much of the country, while full online casino gaming remains considerably more limited.
Maine authorized iGaming in early 2026, but the state is still working through the rules that will govern the market.
On September 30, the Maine Gambling Control Unit published a third version of its proposed iGaming rules, covering areas including licensing, geolocation, cybersecurity, advertising and responsible gambling. The latest consultation remains part of the process required before operators can launch.
The state has reserved online casino access for federally recognized Wabanaki tribes and plans to collect 18% of adjusted iGaming revenue for public programs.
That illustrates why authorization does not necessarily mean online casinos begin taking bets immediately.
Technology has to be tested. Licensing procedures need to be established. Geolocation and cybersecurity requirements must be defined, while responsible-gambling and advertising rules also need to be put into practice.
Other states use different structures.
In New Jersey, online casino operators must partner with Atlantic City casinos, while internet gaming revenue is subject to a 19.75% tax.
The result is a state-by-state market where the basic product may look similar to the customer but the rules governing it vary significantly.
Technology Has Changed How Americans Gamble
Technology has been central to the industry’s expansion.
In Maryland, 97.4% of sports wagers during fiscal 2025 were placed through mobile sportsbooks, leaving only a small share for retail locations.
The change is just as visible in casino gaming.
What once required a trip to a casino for a few spins on popular slot machines can now take place through a smartphone in states with regulated iGaming.
Sports betting has also become more interactive. Mobile customers can now place wagers after games begin, respond to changing odds, build same-game parlays, bet on individual performances and cash out positions before the final whistle.
Consumer adoption has followed.
A 2026 Siena Research Institute survey found that 27% of Americans had an active online sportsbook account, compared with 19% two years earlier.
Among men aged 18 to 49, the figure reached 52%.
Of those who bet, 89% said wagering made live games more interesting, while 83% enjoyed placing small bets on parlays, futures or other long-shot outcomes.
Record Revenue Has Brought New Challenges
Growing betting volume does not guarantee equally rapid revenue growth.
FanDuel accepted more sports wagers during the second quarter of 2026 than a year earlier, but its sportsbook revenue fell by 15%. Unfavourable sporting results reduced the share of wagers the operator retained even as betting increased around events including the World Cup and NBA Finals.
The broader US figures showed the same basic risk during Q2: handle increased while sportsbook revenue edged lower.
July’s stronger results demonstrate how quickly that can reverse when outcomes move in operators’ favour.
Taxes are another pressure.
Illinois introduced a per-wager levy in 2025, charging the largest operators 50 cents for each online wager after they cross 20 million annual bets. FanDuel responded with a corresponding 50-cent customer surcharge.
The rapid growth in mobile wagering has also increased attention on gambling harms.
In Siena’s 2026 survey, 60% of online bettors said they had chased a loss, compared with 52% a year earlier. The share saying someone had expressed concern about their gambling increased from 23% to 31%.
The same survey found 67% support for stronger federal action to address compulsive betting.
Licensed operators also continue to compete with offshore gambling sites. The American Gaming Association estimates that illegal gambling generates $53.9 billion in annual revenue, although its estimate relies substantially on survey research.
Prediction markets add another competitive issue because sports event contracts operate under a federal commodities framework rather than conventional state gambling licences.
iGaming Could Drive the Next Stage of Growth
Sports betting remains a major part of America’s gambling industry, and July’s World Cup-driven rebound shows that large sporting events can still produce substantial revenue growth.
But the longer-term opportunity increasingly appears to be online casino gaming.
Sportsbooks have already reached most of the jurisdictions likely to legalize them in the near term. Full iGaming remains available in far fewer states, leaving considerably more room for geographic expansion if additional legislatures choose to authorize it.
The first half of 2026 also showed that iGaming can continue producing double-digit revenue increases even when sportsbook results fluctuate.
Maine is now one of the markets to watch as it works through the detailed rules required before its authorized online casino market can begin operating.
Operators are preparing for broader changes as well. In an American Gaming Association survey, 62% of gaming executives planned to increase capital spending, while half expected artificial intelligence to reduce operating costs within a year.
The $78.7 billion record set in 2025 showed how far US commercial gambling has expanded since sports betting began spreading nationwide.
The 2026 numbers suggest the next phase may look different. Sportsbooks remain important, but as that market matures, online casinos are taking a larger role in determining where the industry’s next round of growth comes from.