Commercial legal wagering markets have come to be major contributors to economies around the world. These markets provide state revenues, job opportunities and funds for public services, far beyond what takes place within the walls of casinos. The U.S., a nation in which state laws govern a significant portion of the gambling industry, has seen an enormous increase in its gambling footprint over the past several years. As well, new wagering formats such as federally regulated prediction markets, as well as poker platforms based on cryptocurrencies, are rapidly developing outside of the taxable frameworks that have existed historically to define the amount of gambling dollars provided toward state coffers.

The Economic Footprint of State Regulated Gaming

According to the American Gaming Association’s Commercial Gaming Revenue Tracker, commercial gaming revenue in the United States increased to a record $78.72 billion in 2025 – a rise of 9.2 percent compared to 2024. This rise in revenue directly translates to funding available for state and local government; specifically, state-regulated gaming operators paid $18.09 billion in gaming tax revenue to state and local governments in 2025 – a 15.1 percent increase over 2024 – providing support for education, infrastructure and other public services. Every major segment experienced revenue growth:

• Casino Gaming: Casino gaming generated $50.94 billion in revenue and $11.33 billion in tax payments, continuing to generate the greatest share of revenue among all segments.
• Sports Betting: Sports betting generated $16.96 billion in revenue on a total bet of $166.94 billion.
• iGaming (Online Casino): iGaming grew the fastest of all segments, increasing by 27.6 percent to $10.74 billion.

All thirty-eight jurisdictions with commercial gaming reported revenue increases in 2025, demonstrating how widespread the growth was throughout the country.

Wagering Activity Outside the Taxed Structure of State Regulated Gaming

At the same time that state regulated gaming continues to set new revenue highs, an increasingly large proportion of wagering is occurring outside of the taxed structure established by state gaming regulations. According to the AGA, prediction markets offering sports event contracts have diverted more than $500 million in potential sports betting tax revenue to date. A parallel trend is also developing in online poker, with cryptocurrency based poker platforms operating independent of both state licensure and taxation frameworks and conducting their financial transactions using cryptocurrency versus traditional payment processors. CoinPoker is an example of this type of online poker operation — a cryptocurrency only online poker platform utilizing blockchain technology to ensure fair play and accepting players globally, including those from the United States — and doing so without generating any revenue subject to a state’s taxing authority.

The crypto-native format is not replacing the larger scale regulated industry, however it represents a structural alternative that regulatory bodies are only just starting to address.

Jobs and the Industry’s Wider Economic Ripple Effect

Gambling also contributes economically to society, beyond simply generating billions of dollars in annual tax revenues and gross gaming revenues. The gaming industry also generates over 700,000 direct employment opportunities in the U.S., from on-site casino operations and corporate office roles, to the manufacture of gaming products, such as slot machines, and restaurants, retail shops, hotels and other businesses that cater to visitors at gaming facilities. Based upon an economic study commissioned by the American Gaming Association (AGA) on the overall economic impacts of gaming, when taking into account all three types of economic impacts – direct; indirect; and induced – the entire gaming industry creates about 1.8 million jobs and approximately $104 billion in labor income throughout the U.S. That same analysis puts the industry’s total tax contribution — including income, payroll, and other taxes that go beyond gaming-specific levies — at roughly $53 billion a year.

In addition, according to the AGA, the number of job openings created by the gaming industry is larger than those created by two of America’s largest industries – the airlines and the U.S. Postal Service. This growing trend is helping lawmakers consider gaming as more than simply a form of entertainment, but rather as a viable option to create economic development and stimulate job growth within their respective communities.

A New Reality for Lawmakers and Gaming Executives

The differences between highly taxed, state-regulated forms of gambling and rapidly expanding alternatives – which pay significantly lower taxes and/or operate under different regulatory systems – presents a new issue for many policymakers. For example, as reported in a recent survey by the AGA, gaming executives listed prediction markets as among the greatest competitive threats facing traditional forms of gaming today. Much of this perceived competition stems from the fact that these prediction markets do not have to collect the same level of taxes paid by traditional state-licensed sports books and casinos.

Currently, there are differing responses by lawmakers across multiple states. Some are attempting to address this disparity by revising the tax rate imposed upon existing, state-licensed gaming operators. Other lawmakers are exploring whether federal oversight platforms can be integrated into a system designed primarily for state authority. Additionally, with regard to cryptocurrency-based gaming, there may be even further implications regarding measurement and capture of economic benefits derived from gambling activities.

Therefore, how policymakers respond to these emerging issues will play a large part in determining what types of economic contributions will continue to be made by various forms of legalized gambling activity moving forward.