U.S. Gambling Industry Posts Record Growth Despite Regulatory Stalemate
The U.S. commercial gambling industry keeps breaking revenue records. But efforts to expand sports betting and online casino gaming into new states? Those have stalled completely. No bills are being passed through state houses. The political force that propelled legalization between 2018 and 2023 has disappeared. Operators are currently considering how to maximize the amount of revenue out of the existing markets.
Commercial gaming revenue hit $44.68 billion through July 2025. That’s an 8.1% jump from last year. Traditional casino practices helped. Sports betting contributed. Online casino gaming had its part to play. The increase occurred in the majority of the jurisdictions with 34 out of 38 states registering growth. Michigan, Rhode Island, Maryland, and Delaware were the only states that recorded decreases.
iGaming stood out. Revenue reached $5.95 billion through July–a 28.7% spike from the prior year. The expansion came from states that already allow online casinos. Not from new markets opening up. Only seven states currently permit regulated online casino gaming. That number hasn’t changed in over a year, and no new states appear close to legalizing it.
Consumers want faster ways to gamble online. More accessible ways. Industry experts say new technology has made this possible. Players can now play instantly without registration at certain platforms, which eliminates the lengthy sign-up processes that used to create friction. The shift reflects changing expectations. Digital services across industries are moving toward simplicity.
New state legislation? It’s essentially ground to a halt. Bills are barely reaching the Senate floor. Operators have been forced to focus on existing markets instead of planning for geographic expansion. The regulatory movement simply isn’t there.
The American Gaming Association reports sports betting revenue increased by 16% as of July. It reached $8.88 billion. Americans wagered $88.73 billion during that stretch. The national hold rate went from 9.6% to 10% year-over-year.
Commercial sportsbook operators pulled in $988.7 million in July alone. Of the 38 jurisdictions operating a year ago, 34 reported revenue increases.
The seven states where it is legal have witnessed growth in the iGaming sector. Delaware and Rhode Island almost doubled iGaming revenues relative to July 2024. Both states represent smaller markets, though. Pennsylvania, New Jersey, Michigan, West Virginia, and Connecticut account for most online casino activity. New Jersey remains the largest regulated iGaming market.
The inability to legalize the iGaming in additional states is a colossal loss of opportunity. The absence of regulated online casinos in states permitting sweepstakes-like programs has created a vacuum in these states because of their ban. The advantage goes to unlicensed operators.
By the first seven months of 2025, legal gambling activities had paid almost 10.37 billion in state gaming taxes.
DraftKings and FanDuel dominate about two-thirds of the sports betting industry. This is an issue with smaller operators. The entry into competitors such as Fanatics and Hard Rock has been made in recent months. Challenger brands have the best opportunity to compete on superior technology platforms. According to industry analysts, the online gambling sector in North America is set to hit 32.95 billion dollars by 2030.
