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US commercial gaming revenue slipped 0.6% to $6.48 billion in August 2026, according to the American Gaming Association. Casino growth could not offset a sharp decline in sportsbook revenue.
Good To Know
- Sports betting revenue fell to $1 billion despite only a small decline in wagers.
- Online casino revenue grew 12.3% to $1.03 billion.
- State gaming tax collections dropped 1.5% to $1.46 billion.
Sportsbooks Keep Less From Almost The Same Betting Volume
The gap between betting activity and sportsbook revenue explains much of the weaker month. Customers wagered $10.89 billion, down just 0.7%, but operators retained 9.2% of wagers compared with 10.8% a year earlier.
That lower hold rate helped drive the 15.6% revenue decline. It also shows why falling sportsbook revenue does not necessarily mean a similar reduction in customer spending.
Meanwhile, traditional casinos generated $4.44 billion, up 0.9%. Slots contributed $3.25 billion, a 1% increase, while table games grew 2.1% to $885.91 million. The AGA partly credited the Resorts World New York City expansion for stronger table game results.
Online casinos also grew, although the association said iGaming growth continues to slow without new state launches.
The AGA linked weaker betting handle to prediction market competition and a later college football start. Outside June and July, when the World Cup supported activity, monthly handle has fallen year on year since December 2025.
State sports betting tax receipts declined 14%. Separately, the AGA estimates that prediction market sports contracts have displaced $1.56 billion in potential state gaming taxes since early 2025. That is an estimate of forgone collections, rather than an assessed unpaid tax bill.
The association also argues that skill machines and sweepstakes casinos reduce potential gaming tax collections, affecting funding for pensions and responsible gaming programmes.
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