AGA: Balancing growth and headwinds

Annually, the American Gaming Association (AGA) publishes research that offers a comprehensive view of the US gaming industry’s performance and trajectory.

This year’s research overwhelmingly reveals an industry coming off an explosive half decade of expansion, prepared to adapt to consumer behaviors amidst a potential period of economic uncertainty in the years ahead.

Sports betting advertising trends

The AGA annually releases its Sports Betting Advertising Trends report. This year’s report highlights a continued decline in sports betting advertising, which fell 9% in 2024 and is down 27% overall since 2021.

Television sports betting ad volume declined even more – down 17% in 2024 and 44% since 2021. Sports betting comprised just 0.4% of total TV ads in 2024. To put this in further context, alcohol advertising comprises 0.5% of total TV ads and pharmaceuticals stand at 13.6% of total TV ad volume.

The decline isn’t unexpected. As legal sports betting markets mature, it’s clear operators will continue to optimize their marketing investments. Nonetheless, it’s important to remember that legal advertising remains vital for steering consumers away from unregulated offshore operators, many of whom are unaware they’re even using illegal platforms.

Executive sentiment reflects economic uncertainty 

The AGA’s spring 2025 Industry Outlook offers insights into the current and future economic health of the gaming industry based on executive sentiment, RFP activity at casino hotels, gaming revenue, and other economic indicators.

In Q1 2025, real economic activity in the gaming sector contracted compared to the year prior at the fastest rate since the Covid-19 pandemic. And for the first time since we began surveying executives in 2021, more leaders expressed a negative view on current business conditions than a positive one. This shift reflects rising uncertainty around broader economic trends, which many executives cited as limiting operations.

The AGA also recently released our annual State of the States report. State of the States is our definitive look at the year that was in commercial gaming. The report includes a state-by-state look at the industry’s financial performance and the major gaming policy discussions impacting our industry. It also features a wealth of charts breaking down what’s legal where, how many, and what kind of gaming locations are available in each state, and more.

Q1 2025 gaming revenue sets new record

US commercial gaming revenue hit a record $18.87bn for Q1 2025, marking the 17th straight quarter of growth. Traditional casino gaming generated $12.46bn, a 1% year-over-year increase. Online segments saw sharper gains – iGaming jumped 27.3% to $2.52bn, while sports betting climbed 13.6% to $3.87bn. Online gaming now makes up 32.8% of total revenue, reflecting the industry’s digital shift. State and local governments benefited too, collecting $4.25bn in taxes, up 10.6% from Q1 2024.

Data is driving the industry forward

For the past few years, it has felt like everything in gaming was “up and to the right,” but as the rapid expansion into new markets slows and the pandemic-related shifts in consumer behavior become the new baseline, understanding what’s going on and why will become more important than ever. The AGA’s research will continue to look at the industry from all angles – from C-suite sentiment to broad trends in gaming revenue and consumer participation – and we look forward to continuing to provide data-driven insights for industry leaders, policymakers and analysts.

Carlos Mendez

Writer

Odds tell a story long before the result does. When bettors learn to read that story properly, betting becomes a matter of discipline and value rather than emotion or guesswork.

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