Drop in Sports Betting Drags Down US Gaming Revenue in August: AGA Report

AGA Commercial Gaming Revenue Tracker

The American Gaming Association’s (AGA) Commercial Gaming Revenue Tracker features state-by-state and nationwide financial performance data with breakdowns for individual gaming verticals.

TOPLINE INDUSTRY TRENDS

Sports Betting Drives August Gaming Revenue Down: U.S. commercial gaming revenue fell marginally in August as growth in the brick-and-mortar and iGaming sectors was more than offset by significantly lower sports betting revenue.

Traditional casino gaming expanded by 0.9 percent to $4.44 billion. While slot revenue was uneven across states, table game revenue growth was driven in part by Resorts World New York City’s recent expansion.

• Slot machines generated $3.25 billion (+1.0%)
• Table games generated $885.91 million (+2.1%)

Sports betting revenue fell 15.6 percent in August to $1.00 billion on handle of $10.89 billion (-0.7%).

Sports betting handle fell nearly one percent and, outside of June and July, which benefited from the World Cup, is down annually since December 2025. August sports betting handle was impacted by the availability of sports betting on so-called “prediction markets” as well as a later start to the college football season this year.

Besides declining handle, revenue was also hurt by hold falling to 9.2 percent from 10.8 percent last August.

iGaming generated $1.03 billion in August revenue, a 12.3 percent increase compared to the previous year. With no new markets coming online, iGaming growth continues to steadily moderate.

State Budget Impacts: Regulated gaming generated $1.46 billion in gaming tax revenue for vital state programs for August, down 1.5 percent from last year. This figure could have been significantly higher but was negatively impacted by operators of skill machines, “sweepstakes casinos” and those offering illegal sports betting through “prediction market” platforms, none of which pay state gaming taxes.

State sports betting tax revenue in particular fell 14.0 percent in August.

Prediction market platforms offering backdoor sports bets have cost state governments over an estimated $1.56 billion in potential gaming taxes since the start of 2025, depriving seniors’ pension plans and responsible gaming programs, among other victims of critical funding.