US Gaming in 2025: Who’s Really on Top?

The gaming world of today bears no resemblance to how it operated during the last decade. Gaming today embraces two different sectors, that is, video games and casino gambling. Both sectors operate independently but have the same goal, which is to capture consumer resources, gamers’ attention, time, and money. Some states have already served as leaders for game development by creating titles that set the standard for global entertainment. Other states have taken the forefront to establish online casinos and mobile sportsbooks, as well as real-money platforms. A few states do both.

The leadership position between states should honestly be determined by how quickly they adapt to technological advancements, rather than by their current earnings. The US gaming sector is expanding, and you’d be surprised by which states are leading the pack.

Florida’s Quiet Climb to the Top

Florida maintains a low-key position in US gaming, yet produces significant results. Both the video game and gambling sectors in the state are gradually building their reputation through slow and steady progress.

The video game industry in the state has become a major force by creating more than 16,000 gaming positions while producing over $2.6 billion in revenue. The state is establishing itself as a video game development center through the steady expansion of more than 70 company locations, with companies like 2K and EA among them. The video game development market in Florida's Miami-Dade, Broward, and Hillsborough counties shows promising growth with projected revenues of $3.6 billion in 2025.

The gambling industry in the state operates as part of a complex system. Casinos in Florida operate under the control of some of the largest tribal casino operators in the country. The eight commercial casinos in the state earned $691 million in revenue during 2023, and their slot revenue reached $62.6 million in May 2025. The expansion process faces some limitations because of strict legal requirements and voter consent requirements, yet the basic infrastructure remains solid.

iGaming, on the other hand, is both interesting and complex. Sports betting has returned to Florida after the Seminole Tribe established a landmark agreement despite maintaining restrictions on online casinos throughout the state. The Hard Rock Bet platform operates as Florida's exclusive online sportsbook through mobile access for sports wagering. If you are wondering, is online poker legal in Florida? Well, full-scale iGaming isn’t on the books just yet. The demand is high, and the state resides in a legal gray area, with many residents still accessing offshore poker sites that offer different poker variations, including live dealer poker and video poker options.

The laws for Florida serve as a foundation for future gaming expansion. The growth of cybersecurity and data analytics jobs, together with mobile game development positions in Miami and Orlando, supports the evolving gambling sector. Legal clarity stands as the main issue that will determine the future growth of this sector. The opportunity is there since the state benefits from tourism revenue, and online casino gaming could potentially add to state taxes.

Georgia, North Carolina, and Oregon Are Underdogs in the Making

The gaming industry in Georgia relies on its film tax credits as its main growth strategy. Atlanta has multiple independent studios, while several major developers explore potential expansion sites throughout the state. The combination of online media incentives with an expanding tech workforce creates an attractive environment for game development.

North Carolina maintains a small number of esteemed studios alongside its reputation for independent game development. The institutions in this area provide programs focused on game development, while Raleigh and Durham have developed into centers for collaborative creative projects.

Oregon maintains a strong position through its smaller studios, which create innovative mobile and experimental games. The states maintain creative vitality through their innovative ideas that advance the industry, even though they do not produce massive gaming profits or extensive game development employment.

Pennsylvania, Illinois, and Michigan Take the Top Spots in Casino Gaming

Online casino revenue in Pennsylvania reached $291.6 million during March 2025 to claim the first position in the US market, surpassing New Jersey and Michigan. The state achieves its success through multiple aspects besides its gambling operations. The video game market in Pennsylvania is set to generate $3.2 billion by 2025, from several operational studios based in Philadelphia, Pittsburgh, and additional locations. Online gambling adoption during its early stages established a solid technological infrastructure in the state, which now supports both independent developers and creators of interactive content through its iGaming systems, payment solutions, and compliance frameworks.

The Illinois gaming industry reported impressive sports betting handle results at $49.7 billion, along with revenue exceeding $4.16 billion. The gaming revenue serves as a financial source to achieve the state’s broader gaming development objectives. Illinois has dedicated money to develop esports facilities while establishing coding training and studio recruitment initiatives to bring developers into the state. High Voltage Software, together with Iron Galaxy, operates from Chicago, which is transforming into a media-tech center and now hosts a Game Development Master’s degree program at the University of Illinois.

The regulatory framework of Michigan provides flexibility by uniting tribal and commercial gambling operators to create one of the most accommodating systems in the United States. The regulatory model allows innovative features that include live-streamed game show casino content and interactive betting systems. The technical economy of Ann Arbor and Detroit, alongside gaming-gambling crossover talent, helps sustain a steady flow of XR developers and independent studios in these cities.

New York Sports Betting Powerhouse

The American gambling market with the largest sports betting handle and revenue belongs to New York. The state collected $6.19 billion in revenue and $69.8 billion in sports betting handle despite the reported decrease in consumer spending, generating taxes of $3.15 billion.

But it’s not just about sports betting. The indie gaming industry in New York continues to expand through its strong presence in Brooklyn and Manhattan. The city supports the expansion of mobile gaming and live-service apps through its advertising, fintech, and media industries.

New York's legislation, SB 5935, creates even stricter rules for unregulated online casinos and sweepstakes sites, which might establish benchmarks for other states. Its strict regulatory environment, together with significant consumer interest, makes the market an important sector to observe.

Texas and Washington’s Lower Overhead But Higher Output

Texas and Washington State have achieved significant advancement in their respective gaming markets. Both states show significant game development production through their economic value and total sector-generated production within regional or company boundaries. Washington State achieved $11.4 billion in 2023, while Texas generated $5.1 billion. These numbers reflect actual investments together with active hiring from serious businesses.

Microsoft's Xbox Game Studios and Valve operate within Washington State, which allows hardware development, platform services, and cloud infrastructure support. The company operates through complete services that span from video game distribution to platform services, infrastructure maintenance, and hardware development. Seattle developers create games for both gaming consoles and multiplayer online platforms.

Texas provides its value through reduced expenses combined with business-friendly policies. The video game industry in Texas has expanded through id Software and BioWare Austin, while independent studios and medium-sized firms continue to grow their presence. The talent pool, together with infrastructure, has grown substantially due to professionals relocating to Texas for better living conditions.

California Leading the Pack

California is considered the technology-based economic center of the country, with the San Francisco Bay Area maintaining its position as the top destination for fintech startups and innovation. California also maintains its position as the top gaming state in the United States.

Video Gaming

More than 619 gaming companies operate in the state, including major business names such as EA, Activision Blizzard, Riot Games, Ubisoft, 2K, and Nintendo’s U.S. operations. These studios typically work from various locations, including Los Angeles, San Francisco, San Diego, and Silicon Valley. This has resulted in a unique mix of entertainment, technology, and cultural elements. The gaming industry employs over 218,000 people while producing $51.7 billion worth of annual economic value. This revenue includes console, PC, mobile, cloud gaming, and VR/AR in California.

Esports Is Big Business

The US is leading the global esports stage, generating $1,076 million in revenue, with California accounting for a significant share due to its concentration of companies, events, and sponsorships. The state has some of the biggest esports organizations worldwide, including companies like 100 Thieves, Team SoloMid (TSM), Evil Geniuses, and NRG. The competitive teams based in California operate media companies, training facilities, and merchandising empires in addition to their competitive strength.

The LCS League of Legends Championship Series runs its major tournaments from a dedicated studio at Riot Games in Los Angeles. The state has organized various major tournaments, including Overwatch League finals, Call of Duty League events, and fighting game majors. The recent decline in E3 events has not exactly diminished California's position as the central location for live esports events.

The complete system of developers, streamers, platforms, and audiences that exists in California provides the foundation for the state’s competitive edge. The state participates in esports hosting while creating future esports development models for gaming, monetization, and audience engagement.

Mobile Gaming Development

With Silicon Valley driving the tech side, California has become the go-to for mobile hits and innovation in online casino game design, even if the legal side of iGaming is still limited. Many platforms and products developed in California power global apps and online casinos outside of U.S. borders.

Tribal Casino Gaming

California maintains its position as the nation's top state for tribal gaming operations. The state's 66 tribal casinos produced $35 billion in economic value during 2023 while generating about one-third of all tribal casino income in the United States.

Through Senate Bill 549, the state has improved tribal rights and established clearer regulatory laws to improve their economic importance. The current legal status of full-scale online casinos has not fully materialized yet, but commercial card rooms, together with localized online services, maintain the state’s established gambling ecosystem.

California continues to support its unchallenged position as a gaming hub due to E3 and GDC events, combined with significant venture capital investment, exceptional universities, and an abundance of technical talent and creative minds.

Factors Driving Change in 2025

Both industries, video games and gambling, are adapting and changing to how quickly technology continues to advance. 5G networks, cloud platforms, and biometric logins are making mobile the preferred access point. Players want seamless and convenient gaming experiences, from logging in to making payments. AI is also playing a bigger role, adjusting game difficulty, personalizing offers, and supporting smarter recommendations.

Demographics are just as important. Millennials and Gen Z now dominate usage across both sectors. They expect seamless performance, social features, and visually rich environments. If an app or platform feels slow or dated, they move on.

Regulation is also evolving. New York’s crackdown on unlicensed platforms recently signals a nationwide trend that states want to control, tax, and standardize online gaming. The impact on gaming boils down to developers thinking more carefully about in-app purchases, loot mechanics, and compliance with state-by-state rules.

Conclusion

In 2025, the U.S. gaming economy will no longer be led by a handful of states. It’s split between those who develop the games and those who manage the money. California, Washington, and Texas remain the top spots for gaming developers. New York, Pennsylvania, and Illinois are defining what gambling looks like.

Florida, Michigan, and others are proving that a balanced mix of creative and commercial focus can work. Smaller players, from tribal operators to indie studios in Georgia or Oregon, are adding energy that keeps the country competitive.

Gaming in America isn’t just about who earns the most. It’s about who builds, adapts, and sets the pace for what comes next.

Frequently Asked Questions

Are Video Games and Gambling Regulated Differently in the US?

Video games are generally not regulated outside of content ratings and industry guidelines. Gambling, on the other hand, is closely regulated by its state governments. Operators must be licensed, platforms must meet compliance standards, and taxes are applied to revenue. This means games can be made and distributed nationally, while gambling products often vary from state to state.

How Many Americans Regularly Play Video Games in 2025?

About two-thirds of U.S. adults play video games on a regular basis, including mobile, PC, and console formats. This makes gaming one of the most widespread entertainment habits in the country, covering nearly every age group and demographic.

Which Gaming Roles Are Realistic Careers in the US?

The US gaming industry offers diverse, realistic career paths for those with skills in programming, design, production, esports management, data engineering, and marketing. Entry-level roles are also growing, supported by internships and mentorship programs, making 2025 a strong year to enter the field with the right skills and networking.