David Forman, AGA: “2025 will be another record revenue year across all three main verticals: brick and mortar, igaming and sports betting”

David Forman, VP of research at the American Gaming Association, has shared insights about the development of the US gaming industry over the last year and the challenges for 2026.

Exclusive interview.- The latest figures show the success of the US gaming industry in 2025, with record revenue and rapid expansion across the region. To learn more about the industry’s path over the past year and the main objectives and challenges for 2026, Focus Gaming News spoke to David Forman, VP of research at the American Gaming Association (AGA).

In an exclusive interview, Forman also shared insights into achievements, regulation, and the fight against the illegal and unregulated gambling market.

Looking back at the development of the gaming industry in the US, what have been its most significant achievements in 2025?

Even with the unsettled start to the year and a lot of concern about the health of the consumer, gaming continued to provide compelling entertainment value and it will be another record revenue year. Public engagement reached record highs with casino visitation surpassing 50 per cent of the adult population for the first time. Nearly three-quarters of adults saying casinos benefit their state by creating jobs, supporting tourism, generating tax revenue, and strengthening small businesses. That level of participation and public confidence reflects an industry that’s meeting consumers where they are and bringing value to local communities.

The industry also made meaningful progress against the illegal market. American bettors are increasingly choosing legal options: more than 90 per cent of sports bettors and iGamers this year said legality is a key factor in where they play. That’s translating to movement away from the illegal market, with illegal sportsbooks’ share dropping from 36 per cent in 2022 to 24 per cent this year. At the same time, perceptions of the legal industry’s dedication to responsibility continue to grow. Awareness and approval of responsible gaming programs reached all-time highs this year, and the AGA’s launch of the Play Smart from the Start consumer hub gave players and operators an accessible, research-backed resource to support safe play. This all translates to a marketplace that is trusted, transparent, and firmly rooted in consumer protection.

Commercial gaming revenue reached a record annual $71.92bn in 2024. What do you think the trend will be this year?

2025 will be another record revenue year across all three main verticals: brick and mortar, igaming and sports betting. More than half of all adults—57 per cent—participated in some form of gaming in the past year, and casino visitation reached an all-time high of 134 million people. Consumers consistently rate casinos as innovative and high-value entertainment, and younger adults especially have embraced gaming’s entertainment value since the pandemic. Those dynamics point to a broadening customer base and a landscape where Americans increasingly view gaming as a fun and engaging part of their entertainment mix.

“Awareness and approval of responsible gaming programs reached all-time highs this year.”

David Forman, VP of research at AGA.

We’re also seeing continued expansion of legal sports betting, driven by increasing demand in states where it’s already available and by new adoption, most recently with Missouri becoming the 39th state to legalise it. We projected that Americans will wager $30bn on the 2025 NFL season alone—an 8.5 per cent increase over last year and, despite the media environment, American’s continue to view legal sports betting very favourably.

Regarding regulation, which measures implemented this year should be highlighted? What areas still need attention to enhance consumer protection?

The One Big Beautiful Bill Act (OBBBA) increased the slot tax reporting threshold in land-based casinos and we’ve driven a major increase in enforcement against illegal gambling. States all over the country took meaningful steps to shut down illegal machines, so-called “sweepstakes” sites and offshore sportsbooks, reinforcing the distinction between safe, regulated options and unlicensed operators.

Looking ahead, we’ll continue to advocate for enforcement against unregulated skill machines and prediction markets offering sports event contracts, all of which blur the lines for consumers and flout the authority of state regulatory bodies.

The illegal market has increased by 22 per cent since AGA’s last report in 2022. What main actions have been taken throughout the year to fight unlawful activities? What are the plans for the coming months?

The past year has seen some of the most coordinated and data-driven action yet to confront the illegal and unregulated gambling market, and much of that progress has been supported by the AGA. Building on our original illegal market analysis from 2022, we updated our assessment to reflect changes over the past few years. Today, Americans wager more than $673bn annually with illegal and unregulated operators, costing the legal industry $54bn in lost revenue and depriving states of over $15bn in tax receipts.

This year has seen greater enforcement activity; states like New York, Michigan, Kentucky and Virginia increased raids on illegal machines and many others have increased their focus on eradicating offshore sportsbooks. A coalition of 50 attorneys general, followed by a bipartisan group of U.S. Senators, urged the Department of Justice to prioritise investigations and prosecutions of illegal, offshore operators. Prediction markets offering sports event contracts have also drawn attention from state attorney generals and gaming regulators – these offerings skirt state and tribal gaming laws and pose serious risks to consumers and siphon tax revenue from states.

Looking ahead, the AGA’s focus is on deepening collaboration with regulators and law enforcement, pushing for clearer laws to support increased enforcement of products like skill games and sweepstakes sites. We will continue to work with Congress and our federal agency partners to crack down on illegal, offshore operators and enforce state gaming laws. It’s also essential that we continue to educate players about the importance of choosing legal, responsible operators, as our research shows that comprehensive legal markets—especially when paired with strong RG messaging—meaningfully reduce illegal play.

“We’re also seeing continued expansion of legal sports betting, driven by increasing demand in states where it’s already available and by new adoption, most recently with Missouri becoming the 39th state to legalise it.”

David Forman, VP of research at AGA.

What are the primary challenges in the US gaming industry in 2026?

The US gaming industry is committed to protecting consumers and preserving the integrity of the legal market. The illegal market continues to be the largest threat, with offshore sportsbooks, unlicensed igaming sites, and unregulated machines siphoning tax revenue that would be going to supporting communities.

Prediction markets present a separate challenge. These platforms are offering sports wagers nationwide under the label of “event contracts,” bypassing state gaming laws and arguing that a sports bet is no different than the contracts farmers use to protect their businesses from market fluctuations in the price of wheat. This loophole allows prediction market platforms to avoid state gaming taxes, sidestep state responsible gaming standards, and compete unfairly with the operators who follow these strict regulations.

The AGA will continue advocating for the state and tribal-based regulatory system and leading with consumer education and responsible gaming to ensure the legal marketplace remains a safe and trusted option for players.