US commercial gaming revenue fell slightly in August as a 15.6% drop in sports betting revenue outweighed growth in traditional casino gaming and iGaming, according to the American Gaming Association (AGA). GGR for the month totaled $6.48 billion, down 0.6% from August 2025, as per the association’s Revenue Tracker.
Traditional casino gaming revenue rose 0.9% year on year to $4.44 billion. Slot machines generated $3.25 billion, up 1%, while table game revenue increased 2.1% to $885.91 million. The AGA attributed part of the growth in table games to the recent expansion of Resorts World New York City.
Sports betting revenue declined 15.6% to $1 billion, with a total betting handle of $10.89 billion. Handle fell 0.7% year on year, while the hold rate dropped to 9.2% from 10.8% in August last year.
The AGA said sports betting handle was affected by the availability of sports betting through prediction markets and a later start to the college football season. Excluding June and July, which benefited from the World Cup, betting handle has declined year on year since December 2025.
Meanwhile, iGaming revenue increased 12.3% year on year to $1.03 billion. Growth has continued to moderate in the absence of new markets, the AGA said.
Regulated gaming generated $1.46 billion in tax revenue for state programmes in August, down 1.5% from a year earlier. State sports betting tax revenue fell 14%.
The AGA said tax collections were affected by skill-machine operators, sweepstakes casinos, and platforms offering illegal sports betting through prediction markets, which the association highlighted do not pay state gaming taxes.
Prediction market platforms offering backdoor sports bets have cost state governments an estimated $1.56 billion in potential gaming tax revenue since the start of 2025, according to the AGA. It added that lost revenue affects funding for programmes including senior pension plans and responsible gaming initiatives.