As we enter 2026, the US gaming industry moves into the new year with strength and a clear sense of direction. We see that momentum reflected in the numbers: commercial gaming revenue continued its upward trajectory in 2025, with Q3 marking the 19th consecutive quarter of industry growth, and its keeping pace for another strong year.

Just as important as the topline figures is what’s driving them. Americans increasingly view gaming as a trusted form of mainstream entertainment. Our most recent American Attitudes research shows 9 in 10 Americans find casino gambling to be acceptable for themselves or others. It’s a strong signal of the market’s durability.

We also heard this optimism directly from industry leaders in our latest CEO Outlook. Executives overwhelmingly expect continued growth in the year ahead, remaining confident in business conditions and consumer demand. As we build on this momentum, the AGA remains focused on ensuring the legal state-regulated gaming industry continues to operate as intended – responsibly, transparently and with integrity.

Efforts in the Capitol

AGA continues to advocate for policies in Washington, DC that strengthen the market. Tax policy took center stage this past year. We secured a long-overdue modernization of the slot tax reporting threshold, raising it from $1,200 to $2,000. Looking ahead, we ‘re committed to working closely with Treasury and the IRS on implementation while continuing to press Congress to raise the threshold higher.

Several other important pro-growth provisions were passed like lower corporate rates. However, a procedural change resulted in gambling loss deductions dropping from 100% to 90%. AGA’s remains focused on restoring full deductibility.

Ridding the illegal market, state-by-state

Progress in cracking down on illegal gaming has accelerated thanks to coordinated engagement across regulators, legislators and law enforcement, and notably, state attorneys general. The AGA continues to support these efforts with research and guidance that distinguishes legal, regulated gaming from the illegal market.

In 2025, we released new data showing illegal gaming still accounts for one-third of the legal US market. That research spurred action: a coalition of 50 state attorneys general, followed by a bipartisan group of US Senators, urged the Department of Justice to address illegal gambling.
We also released research that revealed Americans overwhelmingly recognize sweepstakes casinos as gambling. States took significant action: 13 issued cease-and-desist orders, California passed a statewide ban, and several others are evaluating legislation.

In the year ahead, combating the illegal market remains a top priority. We urge each state to continue targeting illegal sweepstakes casinos, skills games and other offshore, illegal operators. We remain an active partner to law enforcement, regulators and state leaders to eradicate illegal operators, protect consumers and bolster trust in the regulated industry.

Prediction markets and protecting integrity

This year, a new threat to the integrity of the legal, state-regulated marketplace made itself known: prediction markets offering sports event contracts. The AGA’s position is firm: if a product looks and acts like a sports bet, it must be regulated like a sports bet.

Platforms offering these contracts sidestep state-regulated frameworks that ensure critical oversight, consumer protection, and responsible gaming safeguards that are fundamental to the legal marketplace and followed by regulated operators They also violate state law and undermine tribal sovereignty. That is unacceptable.

In 2026, we will continue urging the Commodity Futures Trading Commission to recognize these products as gambling and enforce its rules prohibiting futures contracts on gaming. The AGA will also continue working closely with state regulators, sports leagues, and industry partners to defend the longstanding sovereignty of states and Tribes to regulate gaming. That collaboration is essential to ensuring integrity remains at the core of the US sports betting market.

A strong path forward

As we face new challenges in the year ahead, our industry is aligned and ready to continue leading responsibly. Embedding responsibility across the sector remains central to our mission. We will continue leveraging initiatives like Have A Game Plan. Bet Responsibly. and Play Smart from the Start to reach players where they are and promote safe, responsible play.

With strong public support, a resilient business outlook, meaningful policy wins and a clear agenda, we are well positioned to keep this industry strong and respected in 2026.