2025 has been a monumental year for the US gambling market as it has made major strides in terms of growth and interest. This year has seen major shifts in terms of consumer behaviour, technological advancements and regulatory frameworks which have shaped the U.S. gambling industry. So, here is an overview of all the major stories and highlights that occurred within the US gambling and sports betting markets during 2025.


Overview of the 2025 US Gambling Market

In terms of revenue, the U.S. commercial gaming industry confirmed record results in the second quarter of 2025, extending a run of sustained growth even as regulators confront the persistent challenge of illegal operators capturing nearly a third of the market.


More specifically, the American Gaming Association (AGA) reported $19.44 billion in commercial revenue for Q2, up 9.8% from last year, marking the sector’s 18th consecutive quarter of growth and its highest-ever Q2. This means that the U.S. remains significantly larger in scale in comparison with the UK, Australia and most other international gambling markets. The U.S. market’s size gives platforms like DraftKings an advantage with more Americans betting online and via apps than ever.


Top US Gambling Market Stories in 2025

In 2025, sports betting expanded in the U.S. with Alaska considering a bill to legalize mobile sports wagering, allowing up to 10 sportsbook licenses and taxing revenue at 20%. Additionally, Missouri legalized sports betting through a constitutional amendment, with mobile and in-person betting set to launch this year. Currently, over 35 states have legalized some form of sports betting and the number is expected to grow as more states are seeking to regulate the market. In 2025, several U.S. states have also adjusted sports betting taxes. Illinois introduced a tiered fee of $0.25 per bet for the first 20 million online bets, then $0.50 per bet. Maryland raised its tax from 15% to 20%, while Louisiana increased it to 21.5%, with a portion of the revenue supporting college athletics programs.


Another headline that emerged in 2025 in the U.S. relates to sweepstakes casinos. These are online sites that allow players to win prizes using virtual tokens. In the U.S. these operate in a legally gray area as they aren't classified as traditional gambling but still closely align with casino games. In 2025, Montana has officially outlawed sweepstakes casinos, becoming the first U.S. state to do so, with the ban taking effect on 1st October. Similarly, Connecticut passed SB 1235, effective 1st October, 2025, banning sweepstakes-style casino games and any “promotional drawings” linked to wagering. This trend is set to continue in 2026, as California has passed legislation banning online sweepstakes casinos from 1st January 2026, further tightening restrictions on platforms that operate in the legal gray area.


As modern technology becomes increasingly integrated into gambling platforms in the U.S, it’s not surprising that some of the biggest gambling stories revolve around tools like artificial intelligence. In 2025, U.S. gambling operators are turning to AI to enhance both player experience and security. The increasing presence of AI-powered chatbots is being reported more because it is becoming the new way of handling customer inquiries and reducing staff workload. In 2026, AI virtual dealers may be implemented to create more immersive live-dealer experiences. It will also improve fraud detection, ensuring a safer environment for players and operators alike, building trust between casino platforms and players.


Like many other countries, the U.S. have begun to focus more on responsible gambling with tighter restrictions on advertising rules and measures to protect vulnerable players. For example, in Illinois, the Gaming Board introduced new advertising rules. This rule, which became effective on 1st August 2025, saw gambling ads being banned on college campuses as well as college media. Operators must also keep detailed logs of their ad campaigns and all marketing must have clear responsible gambling messaging. Elsewhere, in Massachusetts, there are more calls for federal-level gambling regulation, including a national exclusion list, stronger ad restrictions and a clear standard to limit ads that appeal to problem gamblers. Interestingly, Massachusetts is also considering proposals (HB 332 / SB 235) to legalize online casinos, either through existing land-based operators or new licenses, with a proposed tax rate of 20%.


Ultimately, 2025 has been a newsworthy year for the U.S. gambling market with top stories revolving around the legalization of sports betting in various states such as Missouri, the banning of sweepstakes casinos in states like Montana and the growing influence of advanced technology such as artificial intelligence. With the U.S gambling market expanding in terms of revenue and influence, 2026 will likely bring even more drama.