U.S. Commercial Gaming Revenue Rises 4.6 Percent in May 2026 as Brick-and-Mortar Casinos Lead Gains
Kai Lehmann · Aug 14, 2026
U.S. Commercial Gaming Revenue Rises 4.6 Percent in May 2026 as Brick-and-Mortar Casinos Lead Gains
The American Gaming Association released its Commercial Gaming Revenue Tracker covering May 2026, and the data shows total commercial gaming revenue across the United States increased 4.6 percent compared with the same month a year earlier. Growth came primarily from brick-and-mortar casinos, while other segments posted mixed results. Observers note that the figures reflect ongoing shifts in how people engage with different forms of legal gaming, and the report breaks out performance by category with specific dollar amounts and percentage changes. Data from the tracker indicates that overall revenue reached levels consistent with steady expansion in land-based operations. Casino floors benefited from continued foot traffic and table game play, which together offset softness elsewhere. The association compiles these numbers from state regulators and operators, producing a monthly snapshot that tracks both revenue and the underlying handle, or total amount wagered, across commercial markets.Sports Betting Revenue Declines Despite Stable Handle
Legal sports betting revenue fell 1.8 percent year over year to 1.34 billion dollars in May 2026. The handle, or total amount wagered on sportsbooks, stood at 12.06 billion dollars, a drop of 0.4 percent from the prior year. Revenue represents the portion operators keep after paying out winning bets, so the decline occurred even though the total volume wagered remained nearly flat. Lower hold percentages, which measure the share retained by operators, contributed to the result. When hold rates decrease, operators keep less of each dollar wagered, directly reducing revenue even if handle stays steady. The tracker attributes part of this pattern to market conditions that included increased competition from unregulated prediction markets operating outside state oversight.Prediction Markets Draw Significant Sports Volume
Unregulated prediction markets such as Kalshi recorded nearly 15 billion dollars in sports-related volume during the period covered by the report. These platforms function differently from licensed sportsbooks and fall outside state regulatory frameworks that govern traditional betting. As a result, states have not collected taxes on that activity. The American Gaming Association estimates that prediction markets have cost states more than one billion dollars in lost tax revenue since early 2025. This figure represents taxes that would have applied if the same volume had passed through regulated channels. The competition has coincided with the observed dip in legal sports betting revenue, though the tracker also notes that hold percentages played an independent role in the May 2026 numbers.