Online Gambling Revenues in the USA: Market Size and State-by-State Breakdown

The US online gambling market is an industry juggernaut, with billions in profits yearly. In fact, the online gambling revenue in the USA is one of the biggest topics in the global gambling industry, especially due to its segments: online casinos, online sports betting, online poker, and even crypto casinos. 

In 2025, US commercial gaming generated $78.72 billion in GGR, with sports betting and iGaming dominating the segments. However, discussing the US online gambling revenue isn’t as simple as stating numbers.

With the US online gambling scene regulated state by state, each with different approaches to regulating its own gaming markets, it’s only right that we explore online gambling revenues in the USA by dividing them into two main categories:

1. Online casino/iGaming GGR
2. Online sports betting revenue

What Counts as Online Gambling Revenue in the USA?

Before we explore how large US online gambling revenue is, let’s set some ground rules and define some terminology for online gambling and sports betting. Let’s start with revenue:

1. Online Gambling Revenue

The money that casino and sports betting operators keep after paying out winning bets. There’s a simple formula behind online gambling revenue, that being:

Online Gambling Revenue = The total amount wagered – The total winnings paid out. 

Online gambling revenue is also called gross gaming revenue, or GGR.

2. Betting Handle

On the other side of this is the betting handle, which is the total amount wagered by US players at a sportsbook over a given period. Handle is measured over different time periods, as well as by sport, bet type, and other metrics.

Think of it as this: The betting handle is the total amount of money that bettors have placed into a sportsbook. After bettors win, a sportsbook retains a certain amount of money, which becomes the sportsbook’s revenue.

3. Hold

Hold is the percentage of the handle that an operator keeps after paying out all winning bets. Hold is basically the gambling operator’s gross revenue from bets. It measures the operator’s revenue efficiency from bets placed.

State betting regulators compute the hold by dividing GGR by handle and multiplying by 100.

For example:

• If players wager $1,000,000 (handle) on a casino or sportsbook.
• The operator pays out $900,000 to winners.
• The hold = ($100,000 ÷ $1,000,000) × 100 = 10%.

4. Tax Revenue

Last to be defined is Tax Revenue, which refers to the amount collected by the state from operators. The tax revenue is a portion of the operator’s GGR, set by state law or regulations.

TERM	MEANING
Handle	Total amount wagered by players
Gross gaming revenue / GGR	Amount operators keep after paying the winners
Hold	Revenue as a percentage of handle
Tax revenue	Money collected by the state from gambling operators

For example:

• If someone bets $100 million and the casino operators pay out $90 million in winnings, the revenue is $10 million. The handle is still $100 million.

How Much Revenue Does The US Online Gambling Industry Generate?

Now that we’ve established a common ground regarding terminology, let’s get right to the real meat of this article: How much gross gaming revenue does the online gambling industry in the USA actually generate?

Well, the answer is both simple and complex.

To start, the US gambling industry amassed record-setting figures in 2025, with the commercial gaming segment generating $78.72 billion in revenue and legal, state-regulated gaming generating $18.09 billion in gaming tax revenue.

Breaking down the figures per segment, the online-driven segments were the fastest-growing sectors in the entire commercial gambling market of the USA.

US GAMBLING SEGMENT	GGR IN 2025	YEAR-OVER-YEAR (YOY) CHANGE
Total commercial gaming	$78.72 billion	+9.2%
Traditional Casino Gaming	$50.94 billion	+2.3%
Sports betting	$16.96 billion	+22.8%
iGaming and Online Casino	$10.74 billion	+27.6%

Combined, sports betting and iGaming generated around $27.7 billion in GGR, which is roughly 35% of the entire US commercial gambling revenue in 2025. However, this combined number needs context.

While the US iGaming segment can include online casino-style gambling, the sports betting figure may include both online and retail betting. The latter adds complexity, given that each state reports its market differently.

Exploring Online Casino and iGaming Revenue by US State in 2026

As established, discussing the US online gambling revenue has some complications behind it due to the gambling segments therein and the differences in how each US state regulates and reports its online gambling markets.

Still, there are a few ways to explore this topic that can both shed light on the truth behind the numbers and distinguish the necessary semantics.

How US State Online Gambling Regulations Affect Revenue Reports

Let’s start with the legality of online gambling in the US states. According to reports, only 8 US states allow online casinos to operate legally. The 8 main legal iGaming markets are:

• New Jersey
• Pennsylvania
• Michigan
• Connecticut
• West Virginia
• Delaware
• Rhode Island
• Maine**

In Maine, while online casino gambling has been legalized, the market has not yet launched, so any revenue reports may not be official and cannot be fully verified.

For these 8 states, the biggest online casino revenues come from Pennsylvania, Michigan, and New Jersey. Together, these states account for nearly 88% of the entire US iGaming revenue, as seen below:

STATE	2025 ONLINE CASINO / IGAMING REVENUE	MARKET NOTE
Pennsylvania	$2.78 billion to $3.46 billion	Largest online casino market by tracker data
Michigan	Around $3.09 billion	One of the fastest-growing major iGaming states
New Jersey	About $2.91 billion	Mature market with strong online casino brands
Connecticut	Around $739.6 million to $940 million	Smaller but growing regulated market
West Virginia	About $375.7 million	Smaller population, steady online casino growth
Delaware	About $132.5 million	Long-running but smaller online casino market
Rhode Island	Roughly $58 million	Newer iGaming market launched in 2024

These figures are based on monthly market tracker data and state-reported revenue categories. The exact number can vary slightly depending on whether the source uses gross receipts, adjusted revenue, or taxable revenue.

1. Around 41% of New Jersey’s Commercial Gaming Revenue came from Online Casinos.

NJ stands as one of the US’s most important gambling states due to having one of the world’s biggest and most prominent casino cities, namely Atlantic City. Additionally, NJ is one of the first states to legalize sports betting in the US.

In fact, New Jersey is miles ahead of the game. Their online casino GGR reached nearly $3 billion, accounting for 41% of the state’s commercial gaming revenue that year, totaling $6.98 billion.

This shows how mature iGaming markets can reshape a state’s gambling industry. In New Jersey, online casinos are no longer just an add-on. They are now one of the state’s main gambling revenue engines.

2. Pennsylvania iGaming Revenue Continued to Surge in 2025

Like New Jersey, Pennsylvania also puts out massive numbers in the US online gambling industry. In 2025, the state’s gambling market reached a new record. The PGCB reported total gaming revenue of $6.80 billion, up 10.74% from 2024.

Additionally, PA’s iGaming revenue reached $2.78 billion, up 27.22%. Their sports betting market also made waves, reaching $602.5 million, up 17.97% year over year.

3. Michigan Online Gambling Revenue Hit $3.8 Billion in 2025

Like NJ, Michigan also records market-high numbers yearly. In 2025, Michigan operators reported $3.8 billion in online gambling GGR, with $3.1 billion from iGaming and $671.3 million from internet sports betting.

The state also reported $624.6 million in state taxes and payments from online operators in 2025. Most of that came from iGaming, which generated $597.5 million in taxes and fees.

4. 2025 Saw Connecticut’s  Small Online Gambling Market to $937.4 million.

While states like NJ and Pennsylvania undoubtedly dominate the US online gambling scene, smaller betting states are slowly creeping up in the ranks and showing their potential, including Connecticut.

In 2025, CT produced $973.4 million in total GGR from iGaming and online sports betting, up 27.9% from 2024. iGaming was the bigger driver, generating $707.5 million (72.68%), while sports betting yielded $265.9 million (27.31%).

What makes Connecticut different is that it has no commercial casino venues. Instead, online casino gambling is offered through platforms connected to the state’s two tribal casino operators

1. Mohegan Sun
2. Mashantucket Pequot

5. West Virginia Surpassed $1 Billion in Commercial GGR in 2025.

Like Connecticut, West Virginia also has a notable online gambling market despite having a small population. In 2025, WV reported $1.01 billion in total commercial casino GGR, marking the first time the state passed $1 billion in annual commercial GGR.

iGaming was West Virginia’s biggest contributor to their online gambling market, reaching $375.5 million in 2025.

WV’s gambling model is significant because it connects online platforms to the state’s existing casinos and racinos. In 2025, West Virginia had 9 online sportsbooks and 10 online casinos operating in the state.

6. Delaware’s iGaming Market Was Worth $132.5 million in 2025.

Despite being one of the earliest online casino states to exist in the US, Delaware’s market remained small for years. That only changed after the Delaware Lottery launched its first mobile sportsbook and rebranded its online casino platform with Rush Street Interactive.

In 2025, Delaware’s total commercial casino GGR reached $632.9 million, its highest annual total in 20 years.

Delaware’s iGaming growth showed the most promise, with its BetRivers platform achieving $132.5 million in 2025, up by 111.7% from 2024. Subsequently, their online sports betting market, including mobile and retail, reached $34.2 million, up 38.5%.

7. Rhode Island’s Online Gambling Market Produced $58 million in 2025.

Despite only launching its legal iGaming market in 2024, Rhode Island has established itself as a strong contender among smaller US states in the online gambling industry. In fact, RI’s total commercial casino GGR produced $745.3 million in 2025.

RI’s Bally Bet Casino generated $58.0 million in iGaming revenue, which doubled the $26.3 million reported during its 10 months of operations in 2024.

8. Maine’s Future Online Casino Market

Maine should be considered a future iGaming market rather than an active revenue market. By 2025, the Maine Gambling Control Unit reported that no online casino, iGaming, or sweepstakes site had been licensed.

A State-by-State Dissection of US Online Sports Betting Revenue

Sports betting is accessible in more states than online casinos. As of May 2026, sports wagering is legal in 40 states (including Washington, D.C.), with 30 states providing legal online sports betting via licensed apps.

This wider legalization makes sports betting the largest online gambling category by national reach. In 2025, US sports betting generated $16.96 billion in revenue from $166.94 billion in handle. State-regulated sportsbooks also generated $3.71 billion in taxes.

1. In 2025, New York Dominated US States in Sports Betting Revenue.

The Big Apple is undeniably the US’s biggest sports betting market. In 2025, New York produced over $2.5 billion in annual sports betting revenue, driven by several factors, such as:

• Large betting population
• Strong sports culture
• Full mobile betting access
• Heavy use of major sportsbook apps
• High tax rate on sportsbook revenue

New York’s market is especially notable because online sports betting only launched there in January 2022. Despite launching later than New Jersey and Nevada, New York quickly became the national leader.

2. Illinois Sports Betting Revenue

Despite lacking a legal online casino market, Illinois is one of the US’s largest sports-betting states. In 2025, Illinois generated $1.48 billion in sports-betting revenue, up 19.7% from 2024, with its mobile betting segment accounting for nearly 98% of that total ($1.45 billion).

3. 2025 Saw Ohio’s Sports Betting Market Contribute $210 million in Taxes To The State.

Ohio has quickly become one of the most important sports betting states ever since it opened and legalized its sports betting market. In 2025, Ohio’s sports betting reached $1.04 billion, up 15.5% from 2024.

Additionally, the Ohio sports betting industry contributed around $209.2 million in state tax revenue that year.

4. Virginia’s Sports Betting Industry Was Worth $846.1 Million in 2025.

Like Illinois and Ohio, Virginia has proven to be one of the fastest-growing sports betting states. In 2025, Ohio’s mobile and retail sports betting market generated $846.1 million in combined revenue, up 23.5% from 2024. Virginia also generated $118.2 million in sports betting tax revenue.

5. Arizona Sports Betting Revenue Reached a Whopping $838.7 Million in 2025.

In 2025, Arizona proved it belonged in the US sports-betting big leagues, generating $838.7 million in sports-betting GGR and $53.7 million in sports-betting tax revenue.

While Arizona has no commercial casinos, the state legalized its commercial sports betting through licensed operators regulated by the Arizona Department of Gaming.

6. In 2025, Indiana’s Sports Betting Market Reached $570.5 Million.

Indiana remains a steady Midwest sports-betting market. In 2025, statewide sports-betting revenue reached $570.5 million, up 17.2% year on year. Mobile sports betting accounted for about 98% of the total, generating $558.9 million.

Top US Sports Betting Markets by Revenue

Since the repeal of the Professional and Amateur Sports Protection Act (PASPA) in 1992, various states have urgently pushed to establish their own legal sports-betting industries.

Since the controversial 2018 US Supreme Court decision, betting operators have generated over $60 billion in lifetime US sports-betting revenue from more than $650 billion in handle.

RANK	STATE	REPORTED SPORTS BETTING REVENUE TO DATE
1	New York	$8.35 billion
2	New Jersey	$5.92 billion
3	Illinois	$5.35 billion
4	Pennsylvania	$4.05 billion
5	Nevada	$3.39 billion
6	Ohio	$3.13 billion
7	Virginia	$3.06 billion
8	Arizona	$2.90 billion
9	Michigan	$2.50 billion
10	Indiana	$2.47 billion

It should be noted that these are running market totals, not single-year 2025 totals. They indicate which states have emerged as the strongest long-term sports-betting markets since legalisation.

States With Both Online Casino and Sports Betting Revenue

The most valuable online gambling states are usually those that allow both online casinos and sports betting. These states have two major digital revenue streams instead of one.

State	Is online casino legal?	Is online sports betting legal?	Revenue advantage
New Jersey	Yes	Yes	Mature online casino and sportsbook market
Pennsylvania	Yes	Yes	Large population and strong iGaming growth
Michigan	Yes	Yes	High iGaming revenue and strong mobile betting
Connecticut	Yes	Yes	Smaller but fully regulated online market
West Virginia	Yes	Yes	Smaller population, but both verticals are active
Delaware	Yes	Yes	Early adopter with limited scale
Rhode Island	Yes	Yes	Newer online casino market

States that allow both verticals can generate more revenue per player because users can access online slots, live dealer games, poker, and sportsbooks from the same regulated market.

Why Online Gambling Revenue Differs So Much by State

Online gambling revenue varies widely across the US because each state sets its own laws, tax rates, licensing rules, and product availability.

1. Population Size

Bigger states naturally mean bigger and often more active betting populations. This is one reason New York, Pennsylvania, Michigan, Illinois, and New Jersey are major online gambling markets.

2. Legal Product Mix

The US sports betting market generates massive revenue, but online casino gambling typically yields stronger recurring revenue.

The difference maker is that online casino games are available year-round, whereas sports betting depends more on sports calendars and event cycles.

3. Mobile Access

Some US states have recognized the potential of one of the best iGaming trends: mobile casinos.

Evidently, these regions with full and legal mobile betting perform better than those that require in-person registration or restrict online access.

The truth is that convenience matters. If players can bet or play on a phone, the market usually scales faster.

4. Tax Rates

Tax rates affect both state revenue and operator strategy. High tax states can collect more public revenue, but operators may reduce promotions or marketing if the tax burden is too heavy.

5. Market Maturity

It’s obvious that the older the market, the more established it is, meaning it has stronger brand awareness and more stable revenue. This is true for the US states that legalized their online gambling markets early.

New Jersey is a good example of this. NJ launched online casino gambling in 2013 and remains one of the strongest iGaming markets in the country.

6. Number of Operators

More licensed operators can lead to greater competition, stronger bonuses, better apps, and more advertising. That can help grow the market, especially in the first few years after launch.

Online Gambling Tax Revenue in the USA

Given how massive the US online gambling market is, it’s apparent that it’s not only a revenue source for operators but also a major one for states. In 2025, legal commercial gaming generated $18.09 billion in gaming tax revenue.

Additionally, sports betting produced $3.71 billion in tax revenue, while iGaming generated $2.59 billion.

Category	2025 Tax Revenue
Total commercial gaming taxes	$18.09 billion
Sports betting taxes	$3.71 billion
iGaming taxes	$2.59 billion
Traditional gaming taxes	$11.33 billion

States use gaming taxes in different ways. Some direct funds to education. Others use them for infrastructure, local governments, responsible gambling programs, or general state budgets.

For example, Connecticut’s iGaming and sports betting market generated about $139.1 million in tax revenue in 2025, up 28.8% from 2024. All tax revenue from iGaming and commercial sports betting is deposited into CT’s General Fund and used for state programmes, including education, infrastructure, policing, and emergency services.

Another example is Rhode Island. In 2025, RI’s online gambling market proved highly profitable, with iGaming revenue from games that replicate electronic gaming machines (EGMs) taxed at an effective rate of 62.45%, while online table games are taxed at 16.5%.

Which States Have Legal Online Casinos?

As of 2026, only 8 US states legally allow and regulate online casino gambling, accounting for 16% of US states.

State	Status of Online Casino Legality
Connecticut	Legal and live
Delaware	Legal and live
Michigan	Legal and live
New Jersey	Legal and live
Pennsylvania	Legal and live
Rhode Island	Legal and live
West Virginia	Legal and live
Maine	Legalized, launch pending

This is much smaller than the sports betting market. Many states have legalized online sports betting but not online casinos, which matters because online casino revenue can be much larger and more consistent than sports betting revenue in mature markets.

Why Online Casino Expansion Is Slower Than Sports Betting

Despite offering a much more diverse, immediate, and concrete gaming experience, US online casinos are growing at a notably slower rate than other gambling segments. This is because online sports betting is easier for many lawmakers to accept and regulate, since it is seen as an extension of sports entertainment.

On the other hand, online casino gambling, especially slots, raises more concerns about problem gambling and player protection.

US states also have to balance online casino expansion with the interests of existing land-based casinos. Some retail casino operators support iGaming because they can operate online brands. Others worry that online play could reduce in-person visits.

Because of this, iGaming expansion has been slower even though it can generate significant revenue.

Future of Online Gambling Revenue in the USA

The US online gambling market still has room to grow. Several large states, including California and Texas, do not yet have fully legal online gambling markets. If either state legalises online sports betting or online casinos, national revenue could increase sharply.

The biggest future growth area is likely iGaming. Sports betting is already legal in many states, but online casinos remain limited to a small number of markets.

Future growth will depend on:

• More states legalizing online casinos
• New sports betting launches
• Better mobile gambling apps
• Stronger responsible gambling rules
• State tax policy
• Competition from sweepstakes casinos and prediction markets
• Public concerns around gambling addiction and advertising

The market is growing, but it is also becoming more heavily scrutinized. States want revenue, but they also want stronger consumer protections.

The Final Bet

Online gambling revenue in the USA is growing fast, but the market is uneven. Sports betting has reached a national scale, while online casinos remain concentrated in a small group of states.

The biggest online gambling states are not just the states with the most people. They are the states with the right mix of mobile access, legal online casinos, competitive operators, and clear regulation.

For now, Pennsylvania, Michigan, and New Jersey lead the online casino market. New York leads sports betting. The next major wave of growth will depend on which states decide to legalize iGaming next.