December iGaming Gross Revenue Tops $1 Billion
It was another year of strong growth, led by the ‘Big 3’ of Michigan, New Jersey, and Pennsylvania
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Internet casino operators across the United States closed out 2025 in grand style by surpassing $1 billion in gross revenue for December.
That figure does not include Rhode Island, which has yet to post its final-month numbers. The trio of Pennsylvania, New Jersey, and Michigan each posted all-time highs in December, as 2025 provided another 12 months of double-digit, year-over-year growth.
The $1.02 billion in gross operator winnings was up 22.1% from the final month of 2024, while the $929 million in taxable revenue represented a 24% increase. Adjustable gross revenue outpaced gross winnings throughout 2025, since all but one Michigan iGaming platform could deduct only 6% of promotional credits and bonuses versus the previous 10%.
The sextet provided an inflow of $210.6 million into state tax coffers in December, an increase of $51.8 million from the previous year.
Big numbers from the ‘Big 3’
The spectacular year-end closeouts in iGaming’s three biggest markets put the finishing touches on a year of solid growth in each state.
Technically, the Keystone State took top honors for gross revenue with more than $3.4 billion in operator winnings after claiming $322.1 million in December. The full-year figure was a 28.1% increase from 2024.
Penn Entertainment, which counts BetMGM and DraftKings among its platforms, put itself into the iGaming history books there by being the first licensee to surpass $100 million AGR and $125 million in gross winnings.
The $2.78 billion in taxable revenue for 2025 both exceeded 2024 gross revenue ($2.68 billion) and was up 27.2% from the previous year. Excluding local earmarked taxes, the state raked in $810.5 million in receipts, an increase of $186.5 million.
Pennsylvania operators reported a drop of $90.8 billion for the year, up 21.9% from 2024. While not a like-for-like comparison, since iGaming drop figures include active churn of playing winnings, the number is still impressive, given the 2025 full-year sports betting handle nationwide is near $160 billion.
Michigan nipping at Pennsylvania’s heels
Hard Rock’s launch in Michigan to close out 2025 has put platforms in the Wolverine State eye-to-eye with their Pennsylvania counterparts for the monthly top gross revenue spot. It also could result in Michigan keeping New Jersey at arm’s length to lead states in AGR for 2026.
Michigan surpassed $300 million in gross winnings for the first time to close out the year and fell $3.3 million shy of becoming the first state to reach $300 million AGR. The year of growth among the state’s 15 platforms is best be summed up by noting that its then-record of $248.2 million in gross revenue reported for January ranked ninth by year’s end.
The taxman brings Jersey more spoils
Former Gov. Phil Murphy’s decision to rase the online casino tax rate from 15% to 19.75% did little in terms of slowing down operator growth. The state collected $597.5 million in receipts for the year, swelling the coffers with $146.1 million more in revenue.
The platforms tethered to Atlantic City’s casinos combined for $2.91 billion in revenue, an increase of 22% compared to 2024. That level of increase dwarfed the 2.7% bump in brick-and-mortar revenue.
More impressively — or ominously depending on your business viewpoint — December’s record haul of $273.2 million was $56 million above Atlantic City casinos and meant iGaming operators generated more revenue in 2025 than their brick-and-mortar counterparts by $17.1 million.
Checking in on mid-sized markets
Though December did not bring all-time monthly highs to Connecticut and West Virginia, both states could mark 2025 as a year of strong growth.
The de facto duopoly of FanDuel and DraftKings in the Nutmeg State combined for $707.5 million in gross revenue for 2025, up 31.7% from the previous year. The $65.4 million in winnings for December missed October’s record by less than $60,000, as the digital titans cleared $60 million five times during the calendar year.
West Virginia platforms reported $373.3 million in total revenue, a 52.6% surge over 2024. FanDuel’s shift in casino tethers from The Greenbrier to Mardi Gras Casino in mid-September proved interesting data reading: FanDuel’s $26.2 million in winnings for the fourth quarter already accounts for more than 57% of Mardi Gras’ all-time digital revenue, dating back to its June 2023 launch with Betly.
BetRivers nearly doubled its revenue in Delaware, going from $72.9 million to $132.5 million in its second full year of operations. The Rush Street Interactive platform remitted $49.5 million in taxes, an increase of nearly $22.1 million from 2024.
Put it all together and …
The final gross revenue number, excluding Rhode Island, was $10.65 billion. That was an increase of 27.3% over 2024, while AGR climbed 28.4% to $9.67 billion. The group of six collected $1.94 billion in tax revenue, up $361.3 million from 2024.
The known drop among the four states — Michigan and New Jersey do not disclose wagering figures — totaled $123.75 billion. That was 25.6% higher from the $98.5 billion reported among Pennsylvania, Connecticut, West Virginia, and Delaware.
