TLDR Commercial gaming revenue hit a record $7.06 billion in May, up 4.6% year over year. Tribal gaming reported record fiscal year 2025 revenue of $46.2 billion, up 5.3%. The American Gaming Association says prediction markets have cost states more than $1.21 billion in tax revenue. Tribes have filed lawsuits against operators like Kalshi over exclusivity agreements. Prediction markets captured about 27% of comparable World Cup betting activity, up from 9% earlier in the year.
The U.S. gaming industry is reporting record revenue at the same time trade groups and tribal organizations are warning that prediction markets could hurt their business.
New data from the American Gaming Association and the National Indian Gaming Commission show both commercial and tribal gaming hit record highs this year.
The reports do not prove that prediction markets have pulled money away from regulated sportsbooks. They also do not rule it out.
Commercial and Tribal Revenue Both Climb
Commercial gaming brought in $7.06 billion in May. That is a 4.6% increase from the same month last year.
Through the first five months of 2026, commercial gaming revenue reached $34.0 billion. That marks 6.4% growth compared to last year.
Sports betting revenue specifically dropped 1.8% in May compared to a year earlier. The AGA says prediction markets may be partly responsible for that decline.
Still, sports betting revenue from January through May grew 8.5% compared to the same period in 2025.
Tribal gaming also grew. The National Indian Gaming Commission reported $46.2 billion in revenue for fiscal year 2025. That is a 5.3% jump from the year before, and the highest total on record for Indian gaming.
Seven of the agency’s eight regions saw growth. Only the Rapid City region reported a slight decline.
Pennsylvania showed a similar pattern. Combined iGaming and sports