America’s commercial gambling industry just pulled a royal flush. In 2024, the sector brought in a record-breaking $72.04 billion in revenue–a 7.5% increase from 2023 and the fourth consecutive year of growth since the pandemic-era shutdowns. From small-town sportsbooks to glitzy online slots, the nation’s appetite for gambling shows no sign of slowing.
Still, amid the celebration, there are warning signs on the horizon. While revenues continue to climb, industry leaders are sounding more cautious than ever. And perhaps most notably, restrictive state laws are still driving millions of gamblers to offshore alternatives.
Consequences of restrictive state laws
Despite the stunning revenue growth, the fragmented nature of U.S. gambling laws means access remains patchy. Only 38 states have expanded gambling regulations, and even fewer allow online casinos.
In other words, as U.S. casino revenue hits $72 billion, overseas casino alternatives still serve the millions of players left behind. According to casino expert Lloyd Mackenzie, these platforms offer bonuses, promotions, and various games. On the plus side, players need not worry about safety–all these offshore casinos are regulated and secure.
These international casinos thrive on the gaps in U.S. law. Even as domestic iGaming platforms generated $8.4 billion in 2024 (up 28.7%) many bettors simply sidestepped restrictions via VPNs or unregulated mobile apps. For them, the thrill of the game matters more than jurisdiction.
“Legal growth is impressive, but we’re still missing out on substantial tax revenue by letting demand leak to overseas operators,” said one policy analyst familiar with ongoing state-level legislation.
Smaller states see explosive growth
While big names like Nevada and New Jersey still lead in raw dollar terms, some of the most impressive growth came from unlikely contenders.
- Washington D.C. saw a jaw-dropping 181.7% revenue increase.
- Kentucky jumped 148%, thanks in part to newly legalized sports betting.
- North Carolina joined the fray in 2024, pulling in $583.6 million in its debut year.
In total, 28 of the 38 states with expanded gambling laws set new annual records. Sixteen states enjoyed double-digit percentage growth, proving that you don’t need a skyline of neon signs and showgirls to attract serious betting dollars.
Slots rule, but digital is the real winner
Slot machines remain the backbone of American gambling, contributing $36.06 billion, which is up 1.6% from 2023. Table games, however, slipped by 1.7% to $10.14 billion, continuing a trend of waning interest in in-person blackjack and roulette.
But the real action is online.
- Online casino games rose 28.7%, reaching $8.4 billion.
- Sports betting surged 25% to $13.78 billion.
All told, digital platforms accounted for nearly one-third of all commercial gambling revenue in early 2025, climbing to 32.8% from 29.3% the year before.
Even with traditional casinos still accounting for $49.89 billion (nearly 70% of total revenue) their growth was a tepid 1%, suggesting that the future of gambling is firmly digital.
Las Vegas shows signs of fatigue
The Las Vegas Strip, long the crown jewel of American gambling, is flashing yellow lights.
- Down 5% in March 2025
- Down 3% for the year so far
- December 2024 saw a 2% dip tied to weak sports betting
While Vegas still dominates in many ways, the numbers show a creeping malaise. Tourists are shifting to digital play, and high rollers are increasingly choosing convenience over cocktails and croupiers.
Industry mood
The American Gaming Association’s (AGA) Gaming Industry Outlook showed its Conditions Index fell 0.9% in Q1 2025, marking the largest contraction since the pandemic shutdowns. For the first time since tracking began in 2021, more than a third of industry leaders said they view current conditions as negative.
Still, many remain bullish about what’s to come. Nearly half of executives expect revenue growth to accelerate in 2025. Many plan to increase investment in digital platforms and infrastructure.
