U.S. sports betting revenue took a significant hit in August, falling 15.6% compared to the same month last year. The decline came despite only a slight decrease in the amount Americans wagered. According to the American Gaming Association’s (AGA) Commercial Gaming Revenue Tracker, released October 21, regulated sportsbooks generated $1 billion in August revenue from $10.89 billion in wagers. While sports betting struggled, online casinos continued growing, highlighting the different directions of two major segments of the U.S. gambling industry.
Sportsbook revenue fell 15.6% year over year, but total betting handle declined just 0.7%. The difference was largely driven by a lower hold percentage, which measures how much money sportsbooks retain from the wagers they accept.
Operators held 9.2% of wagers in August, compared to 10.8% during the same month in 2025. That means sportsbooks weren’t necessarily seeing a dramatic decline in customer activity. Instead, they were keeping a smaller percentage of the money wagered, which had a much greater impact on revenue.
The AGA noted that sports betting handle has declined year over year in most months since December 2025. June and July were exceptions, benefiting from increased wagering activity during the FIFA World Cup. The association also pointed to competition from prediction markets, along with a later start to the college football season as factors affecting August’s numbers.
The slowdown has been evident in individual states as well, as Michigan sportsbooks also experienced a decline in August, with handle falling 2.5% and adjusted gross receipts dropping 29.3% compared to the previous year. Those figures reflect the difficulties sportsbooks can face during the slower summer months.
While sportsbooks had a challenging August, online casinos generated $1.03 billion in revenue, an increase of 12.3% year over year. That total slightly exceeded the $1 billion generated by sports betting, despite legal iGaming being available in far fewer states.
Traditional casinos also posted modest growth, with revenue increasing 0.9% to $4.44 billion. Slot machines accounted for $3.25 billion, while table games generated approximately $885.9 million. The results helped offset some of the decline in the sports betting sector.
Online casino growth has been particularly strong in established markets such as Michigan, where iGaming revenue increased 32% last year. Unlike sports betting, which can fluctuate depending on the sports calendar and game results, online casino activity is typically more consistent when it comes to revenue.
However, the AGA noted that iGaming growth is gradually slowing, partly because no additional states have recently legalized online casino gambling. However, some states could be legalizing iGaming soon, including Maine.
August’s numbers are notable, but they don’t mean Americans are losing interest in sports betting. Handle declined by less than 1%, indicating that wagering activity remained relatively stable even as sportsbook revenue fell sharply.
September’s results should provide a clearer picture of whether August was a temporary setback or part of a longer slowdown. With the NFL and college football seasons underway, sportsbooks have entered one of their busiest periods of the year.
