The United States gaming industry experienced a significant rebound in the third quarter of 2025, with revenue climbing 7.2% to $18.96 billion. This marks the strongest quarterly performance since 2022, signaling a robust recovery and growing confidence within the sector.
Key Takeaways
- US gaming revenue reached $18.96 billion in Q3 2025, a 7.2% increase year-over-year.
- This quarter represents the highest revenue since 2022.
- Industry confidence is high, with 26% expecting stronger business conditions in the next 6-12 months.
- Las Vegas saw strong gaming revenue despite a dip in overall visitation.
- Regulatory concerns, particularly around prediction markets, are emerging as a key issue.
Industry Confidence on the Rise
David Forman, vice president of research at the American Gaming Association (AGA), attributed the strong performance to the compelling entertainment value offered by both online and brick-and-mortar casinos. "Casinos, gaming … whether it’s online or the brick-and-mortar property, have a lot to offer from an entertainment perspective," Forman stated. This sentiment is echoed by industry executives, with 26% anticipating improved business conditions over the next six to twelve months, the most optimistic outlook in three years.
Navigating Uncertainty and Growth
Forman highlighted that the industry has successfully navigated a year marked by consumer spending concerns and initial tariff announcements. By September, total gaming revenue, encompassing casino floors, sports betting, and iGaming, had risen by nearly 8%. This trend is mirrored in Las Vegas, where gaming revenue in Clark County increased by 5.5% in October, even with an 8.8% decrease in total visitation. Year-to-date gaming revenue in the region is up 1.1% compared to the same period in 2024.
Economic Activity and Future Outlook
Beyond just revenue, real economic activity in the gaming industry saw an increase of just over 3% year-over-year in the third quarter. This broader measure includes revenue, hotel bookings, employment, and wages, marking the first such increase since late 2024. Industry leaders are optimistic about continued growth in customer activity over the coming months, driven by increased legal access to gaming products and the industry’s attractive entertainment offerings.
Emerging Regulatory Challenges
Despite the positive financial trends, state regulatory concerns have surfaced as a significant issue for AGA member CEOs. Half of the respondents in the AGA’s outlook expressed worries about state regulation, particularly concerning the rise of unregulated gaming platforms. Prediction markets, which offer "sports event contracts" but operate under the Commodity Futures Trading Commission (CFTC), are a prime example. These platforms can reach consumers in states where sports betting is illegal, creating a complex regulatory landscape. Brett Abarbanel, executive director of UNLV’s International Gaming Institute, noted that the rapid pace of technological development outpaces existing gaming laws, leading to ambiguity. While some states, like Nevada, are taking action against these entities, the interplay between state and federal regulations remains a developing issue. Collaboration among operators, suppliers, regulators, and legislators is deemed crucial for the industry’s continued thriving amidst economic fluctuations.
