iGaming Journalist & Crypto Casino Analyst
Legal online casino gaming — iGaming — is the fastest-growing segment of the regulated US gambling industry, and 2025 was the year it crossed a symbolic threshold. This reference page compiles US iGaming revenue by state from official regulator filings and the American Gaming Association's annual accounting, adds first-half 2026 figures for the three markets that dominate the category, and shows the tax rates that determine how much of that revenue reaches state treasuries.
Key Findings
US iGaming produced $10.74 billion in gross gaming revenue in 2025, up 27.6% year over year and past $10 billion for the first time. Pennsylvania ($3.46B), Michigan (~$3.1B) and New Jersey (~$2.91B) supplied roughly 88% of the national total. iGaming out-earned commercial land-based casinos in both Pennsylvania and New Jersey for the first time. Through June 2026, those three states were up 16.3% year over year.
The National Picture: iGaming in Context
The American Gaming Association's Commercial Gaming Revenue Tracker put total US commercial gaming revenue at $78.72 billion in 2025, a 9.2% increase, generating a record $18.09 billion in state and local gaming taxes (+15.1%). All 38 commercial gaming markets tracked by the AGA posted annual revenue increases.
Within that total, the three segments moved at very different speeds:
| Segment | 2025 Revenue | YoY Change | 2025 Taxes Paid | Tax YoY Change |
|---|---|---|---|---|
| Traditional casino gaming | $50.94 billion | +2.3% | $11.33 billion | +7.2% |
| Sports betting | $16.96 billion | +22.8% | $3.71 billion | +32.4% |
| iGaming (online casino) | $10.74 billion | +27.6% | $2.59 billion | +36.9% |
| Total commercial gaming | $78.72 billion | +9.2% | $18.09 billion | +15.1% |
Two things stand out. First, iGaming was the fastest-growing segment for the third consecutive year despite being available in only seven states. Second, iGaming's tax contribution grew faster than its revenue (+36.9% versus +27.6%), a consequence of growth concentrating in high-tax jurisdictions and of New Jersey raising its rate mid-year. Sports betting, by contrast, generated $16.96 billion in revenue from a total handle of $166.94 billion — a much larger gross throughput producing less operator revenue than most people assume. Our companion coverage of US sports betting by state looks at that segment in detail.
iGaming Revenue by State, 2025
Seven states offered legal, regulated online casino gaming for all or most of 2025: New Jersey, Delaware, Pennsylvania, Michigan, West Virginia, Connecticut and Rhode Island. Nevada permits online poker only and is excluded from iGaming totals.
State totals below are drawn from regulator reporting and the AGA's State of the States 2026. Where a state reports on a fiscal rather than calendar year, that is flagged explicitly — mixing the two is the single most common error in gambling-revenue reporting.
| Rank | State | Reporting period | Online casino GGR | YoY change | Launched |
|---|---|---|---|---|---|
| 1 | Pennsylvania | Calendar 2025 | $3.46 billion | ≈ +28% | July 2019 |
| 2 | Michigan | Calendar 2025 | ≈ $3.10 billion | Double digit | January 2021 |
| 3 | New Jersey | Calendar 2025 | ≈ $2.91 billion | Double digit | November 2013 |
| 4 | Connecticut | Fiscal 2025 | $537.4 million | +32.3% | October 2021 |
| 5 | West Virginia | Fiscal 2025/26 | $439.2 million | +42.7% | July 2020 |
| 6 | Delaware | Fiscal 2025 | $85.5 million | Sharp increase | November 2013 |
| 7 | Rhode Island | Calendar 2025 | Smallest market | Growth phase | March 2024 |
| — | US total | Calendar 2025 | $10.74 billion | +27.6% | — |
A useful sanity check: the three largest markets sum to roughly $9.47 billion, or about 88% of the $10.74 billion national total — consistent with the AGA's statement that Michigan, New Jersey and Pennsylvania account for "nearly 90 percent" of nationwide iGaming revenue. The residual of roughly $1.27 billion is split across Connecticut, West Virginia, Delaware and Rhode Island on a calendar-year basis.
Why Pennsylvania leads
Pennsylvania combines the largest population among iGaming states with a mature, crowded operator field. Its 2025 total of $3.46 billion represented growth of nearly 28% — a remarkable figure for a market entering its seventh year. Pennsylvania has also been the clearest case study in cannibalisation fears failing to materialise: land-based casino revenue did not collapse as online scaled.
Why Michigan is closing the gap
Michigan launched two years after Pennsylvania but has grown faster from a similar population base. Operator additions during 2025 and 2026 — including new casino brands entering the market — pushed monthly totals to within a rounding error of Pennsylvania's by mid-2026.
Why New Jersey matters most historically
New Jersey is the reference market. It legalised online casino gaming in 2013, and every subsequent state's regulatory framework borrows from its structure. In 2025, New Jersey's online casino revenue exceeded the combined revenue of Atlantic City's land-based casinos for the first time — an inflection point that will be cited in legislative debates for years.
First-Half 2026: The Big Three Month by Month
Monthly regulator reporting for January through June 2026 shows no slowdown. The table below aggregates published state figures for the three markets that drive roughly 90% of the category.
| Month (2026) | Pennsylvania | Michigan | New Jersey |
|---|---|---|---|
| January | $316.2M | $298.3M | $258.9M |
| February | $300.6M | $273.1M | $251.8M |
| March | $330.8M | $322.1M | $272.1M |
| April | $311.8M | $303.4M | $263.1M |
| May | $321.1M | $305.8M | $276.3M |
| June | $303.1M | $301.2M | $271.0M |
| H1 total | $1.88B | $1.80B | $1.59B |
Year-over-year, the same three states grew from $4.53 billion in the first half of 2025 to $5.27 billion in the first half of 2026 — a 16.3% increase worth roughly $740 million in additional revenue.
| State | H1 2025 | H1 2026 | Growth |
|---|---|---|---|
| Pennsylvania | $1.67 billion | $1.88 billion | +13.1% |
| Michigan | $1.47 billion | $1.80 billion | +22.6% |
| New Jersey | $1.39 billion | $1.59 billion | +15.0% |
| Combined | $4.53 billion | $5.27 billion | +16.3% |
Michigan's 22.6% growth rate is the outlier and explains the narrowing gap with Pennsylvania: in June 2026 the two states were separated by just $1.9 million. Including the four smaller states, US online casino revenue passed $6 billion through six months — a pace above $1 billion per month and on track for roughly $12 billion for the full year.
Tax Rates: Where the Money Goes
Headline revenue figures are gross gaming revenue — the amount wagered minus the amount returned to players, before operator costs. What states actually collect depends on rate structures that differ enormously.
| State | Online casino tax structure | Notes |
|---|---|---|
| Pennsylvania | 54% on online slots; 16% on table games and poker | Highest effective iGaming rate in the US |
| New Jersey | 19.75% on iGaming GGR | Raised from a lower rate effective 1 July 2025 |
| Michigan | Graduated 20%–28% of adjusted gross receipts | Higher tiers apply to larger operators; Detroit adds a municipal share |
| West Virginia | 15% of adjusted gross receipts | Among the lowest rates nationally |
| Delaware | State-operated model with revenue share | Lottery-run framework rather than a pure tax |
| Connecticut | 18% for the first five years, then 20% | Tribal-operator exclusivity model |
| Rhode Island | Revenue-share model with a single operator | State takes the majority share of online slot revenue |
Pennsylvania's 54% slot rate is why the state punches far above its revenue weight in tax terms, and why operators price promotions differently there than in Michigan. New Jersey's mid-2025 increase to 19.75% is the main reason national iGaming tax receipts (+36.9%) outgrew national iGaming revenue (+27.6%). Anyone comparing operator profitability across states needs the rate column, not just the revenue column.
iGaming Versus Land-Based: The 2025 Crossover
The single most consequential data point of 2025 is structural rather than numerical. In both Pennsylvania and New Jersey, annual online casino revenue exceeded annual commercial land-based casino revenue for the first time. For a decade, the industry argument against iGaming legalisation rested on the claim that online play would cannibalise brick-and-mortar properties and the jobs attached to them. The 2025 data complicates that story: land-based revenue nationally still grew 2.3%, while online grew 27.6%. Online is expanding the market faster than it is redistributing it — though the two states now derive a majority of casino revenue from a channel that employs a fraction of the staff.
Why Only Seven States?
Sports betting spread to more than 35 jurisdictions in seven years; iGaming has added a single state (Rhode Island) since 2021. Three factors explain the divergence: land-based casino operators and unions in many states oppose online casino expansion on cannibalisation and employment grounds; state lotteries in several jurisdictions regard online slots as competitive with iLottery products; and online casino gaming attracts more sustained responsible-gambling scrutiny than sports betting because of its continuous, high-frequency play pattern. Several states debated iGaming bills in 2025 and 2026 without passing them. For readers tracking that legislative pipeline, our guides hub and the wider online casino section follow each session.
What These Figures Do Not Capture
Regulated iGaming revenue is a measure of one channel in one country, and it systematically understates total online casino play by US residents. Three categories sit outside it.
Offshore and unlicensed sites. Operators without a US state licence do not report to any regulator, so their volume appears in no official dataset. The American Gaming Association has repeatedly flagged the illegal market as a material competitive and consumer-protection problem, and in its 2025 accounting also estimated that sports-event contracts offered by prediction markets outside state and tribal frameworks have diverted more than $500 million in potential sports betting tax revenue to date. Whatever the true scale, any claim that the $10.74 billion figure represents all US online casino activity is wrong.
Sweepstakes and social casinos. Dual-currency sweepstakes casinos operate in most states under promotional-law frameworks rather than gaming licences. They generate real revenue and were the subject of active enforcement and legislative attention through 2025 and 2026, but they do not appear in iGaming GGR.
Tribal gaming. The AGA's commercial tracker covers commercial operators. Tribal gaming revenue is reported separately, through the National Indian Gaming Commission, on a different schedule and definition. Connecticut's market is a hybrid case, since its online product runs through tribal operator exclusivity.
How to Read Monthly Volatility
Journalists and analysts frequently over-interpret single-month iGaming figures. February is almost always the weakest month of the first half simply because it is two to three days shorter than its neighbours; the February 2026 dip visible in all three states above is a calendar artefact, not a demand signal. March, conversely, benefits from both a 31-day month and the college basketball calendar drawing casual players onto casino apps alongside sportsbooks.
Seasonality also runs the other way in summer. June figures softened slightly in Pennsylvania and New Jersey while Michigan held nearly flat — consistent with the long-observed pattern of online casino play dipping in warm months and peaking in the final quarter of the year. That fourth-quarter effect is the main reason all three states are on pace to finish well above the run rate implied by their first-half totals, and why full-year 2026 projections in the $3.7 billion to $4 billion range for both Pennsylvania and Michigan are plausible rather than aggressive.
Methodology
All figures in this article come from published sources rather than modelling or estimation. National totals and segment splits are taken from the American Gaming Association's Commercial Gaming Revenue Tracker for calendar year 2025 and the State of the States 2026 report, which aggregates filings from every commercial gaming regulator in the United States. Monthly 2026 state figures are compiled from Pennsylvania Gaming Control Board, Michigan Gaming Control Board and New Jersey Division of Gaming Enforcement reporting as collated in industry trade coverage.
Three methodological cautions apply. First, Connecticut, West Virginia and Delaware report on fiscal years that do not align with the calendar year, so their figures are not directly comparable to Pennsylvania's, Michigan's or New Jersey's; we have labelled the period for each. Second, "iGaming" excludes online sports betting and, in most state reporting, excludes online poker rake, which is small enough to fall within rounding at national scale. Third, gross gaming revenue is reported before promotional deductions in some states and after them in others, which affects cross-state comparisons at the margin. Where an exact 2025 calendar figure was not published for a state, we have marked the value as approximate rather than presenting a precise number we cannot source. Readers who need audited figures for regulatory or academic work should go to the primary regulator filings listed in the sources section.
Frequently Asked Questions
How much revenue did US online casinos generate in 2025?
US iGaming generated $10.74 billion in gross gaming revenue in 2025, a 27.6% increase over 2024 and the first year the category cleared $10 billion. It also produced $2.59 billion in state gaming taxes.
Which state has the highest online casino revenue?
Pennsylvania, at approximately $3.46 billion in 2025. Michigan is second at roughly $3.1 billion and closing quickly — the June 2026 gap between the two was under $2 million.
How many US states have legal online casinos?
Seven: New Jersey, Delaware, Pennsylvania, Michigan, West Virginia, Connecticut and Rhode Island. Nevada permits regulated online poker but not online casino games.
Is online casino revenue bigger than sports betting revenue?
No. Sports betting produced $16.96 billion in 2025 versus iGaming's $10.74 billion. But sports betting is legal in far more states, so iGaming generates substantially more revenue per available market — and it is growing faster.
Which state taxes online casinos most heavily?
Pennsylvania, which applies a 54% rate to online slot revenue and 16% to table games and poker. West Virginia's 15% flat rate is at the other end of the scale.
Sources
- American Gaming Association — Commercial Gaming Revenue Hits $78.7 Billion in 2025
- American Gaming Association — State of the States 2026
- Pennsylvania Gaming Control Board, Michigan Gaming Control Board and New Jersey Division of Gaming Enforcement monthly revenue reports (January–June 2026)
- West Virginia Lottery fiscal year 2025/26 online casino reporting
- Connecticut Department of Consumer Protection and Delaware Lottery fiscal year 2025 iGaming reporting
Cite This Article
If you use data from this article, please link back to https://www.deucescracked.com/blog/us-igaming-revenue-by-state-data. Suggested citation: DeucesCracked Editorial, "US iGaming Revenue by State: 2025-2026 Data," DeucesCracked, 24 August 2026. Figures are compiled from American Gaming Association and state regulator reporting; those original sources should be credited alongside this page for academic or regulatory use.
For ongoing coverage of state markets and monthly revenue releases, see our news and analysis archive.
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