Tribal gaming revenues reached unprecedented levels last year, according to new data, as commercial casinos also posted record earnings. However, there was a notable decline in sports betting, with industry leaders attributing this slump to the rapid growth of prediction markets.
The latest figures from the National Indian Gaming Commission (NIGC) indicate an impressive increase of $2.3 billion in gross gaming revenue for 2024, marking a 5.3% rise to over $46 billion, surpassing the previous year’s record high.
Sharon Avery, an associate commissioner at the NIGC, expressed optimism about the future, highlighting that tribal compacts performed well and describing 2025 as “another strong year” for tribal gaming operators.
As this year progresses, tribes across the United States are looking to expand, with several new tribal casinos opening and plans for more and online operations on the horizon.
The NIGC categorizes its members into eight geographic regions, and nearly all reported increases in both the number of operational sites and gross gaming revenues. Notably, the District of Columbia saw the largest year-on-year revenue growth, soaring nearly 10% to over $11.2 billion.
The commercial gambling sector also enjoyed growth, as reported by the American Gaming Association (AGA). In May, gaming revenues rose by 4.6%, primarily driven by a 15% uptick in iGaming revenues, contributing to total gross gaming revenue (GGR) of $4.7 billion from traditional casinos. This news follows the AGA’s report indicating that its members had surpassed the industry’s all-time high GGR numbers for 2025, which exceeded $79 billion with a more than 9% increase.
Despite these successes, the picture isn’t entirely bright for tribal and gaming operators. In May 2026, sports betting experienced a nearly 2% decrease from the same month last year, totaling $1.34 billion. The overall sports betting handle also dipped slightly, down by 0.4% to just over $12 billion. Illinois reported particularly disappointing figures, with sports wagers falling over 10% year-on-year to just above $1.1 billion.
May marked the second consecutive month of decline in sports betting revenue. Estimates suggest that prediction markets in May reached a volume exceeding $20 billion, surging to $50 billion with the onset of the World Cup.
The AGA’s report indicated that legal sports betting revenue and state gaming taxes were adversely affected by the competition from prediction markets, dubbing the rise of these markets as a detrimental force. The report criticized the operators of prediction markets, stating, “Betting on prediction markets continues to explode outside of state regulatory guardrails.” They cited the rise of prediction markets as a factor contributing to a 2.4% decline in sports betting-related tax revenues.
In a statement, Senate Majority Leader Chuck Schumer highlighted concerns over insider trading in prediction markets, calling for tighter regulations.
The AGA further asserted that operators were facilitating illegal sports bets through prediction marketplaces that do not contribute to state gaming taxes, ultimately hurting funding for essential programs like senior pension plans and responsible gaming initiatives.
This complex issue has led to escalating legal battles between the AGA, tribal leaders, state regulators, and prediction market platforms such as Kalshi, Polymarket, and Robinhood. These prediction markets have support from the Commodity Futures Trading Commission (CFTC), which maintains that regulated platforms provide financial products rather than betting services. CFTC Chairman Michael Selig emphasized that gambling occurs solely within casino environments.
