In-Person Revenues Decline Across the Region
Gaming revenue for in-person casinos declined in August across Delaware, Maryland, New Jersey, New York, Pennsylvania, and Virginia. The American Gaming Association (AGA) attributed the drop to the expansion of unregulated gambling channels, including prediction markets and sweepstakes casinos, which operate outside traditional state oversight.
Atlantic City reported in-person casino revenue of $294.9 million, a 5.5% decrease from the same period last year. In Pennsylvania, brick-and-mortar gross gaming revenue (GGR) from slots and table games totaled $280.3 million, representing an almost 6% year-over-year decline. Data for Pennsylvania was released on September 17. Physical slots and table games revenue in the state reached $297.7 million in August 2025, providing a baseline for the current comparison.
Other states also reported significant drops. Maryland’s combined casino winnings fell by 6% to $160 million. Virginia saw casino revenue drop by almost 5% to $97.6 million. Delaware’s in-person casino revenue decreased by almost 3% to $43.8 million. New York experienced the steepest decline, with racino GGR falling 38% to $137.2 million.
iGaming Grows in Legal Markets
Despite the downturn in brick-and-mortar facilities, online gambling revenues increased in states where it is legally permitted. The Mid-Atlantic region is home to four of the eight U.S. states with legal iGaming: Delaware, New Jersey, Pennsylvania, and West Virginia. West Virginia does not issue monthly casino revenue reports, so data was not available for that jurisdiction.
In New Jersey, iGaming revenue grew by 4.4%. Pennsylvania’s online casino GGR increased by almost 6%. Delaware saw the most significant surge, with iGaming revenue jumping 35%. These gains occurred even as physical casino revenues in the same states declined, suggesting a shift in player behavior toward digital platforms.
AGA Blames Unregulated Operators
The AGA argues that the decline in legal market revenues is directly linked to the rise of unregulated gambling. According to the association, prediction markets that offer trading on sports and political events have transformed into de facto illegal gambling and sports betting operations in states like Maryland, Virginia, and New York, where they are accessible to residents.
Sweepstakes casinos, which use promotional models to circumvent traditional gambling laws, continue to operate in Virginia and Maryland. The AGA estimates that unregulated online slots and table games account for the majority of unlawful bets, with total annual wagers in the illegal market reaching $673.6 billion. Of that total, $466.2 billion is attributed to unregulated online slots and table games.
“Illegal gambling operators are thriving at the expense of American consumers, siphoning billions in tax revenue from state governments, and undercutting the efforts of the legal market,” said AGA President and CEO Bill Miller. “It’s time for a national crackdown on the pervasive illegal market that is draining state coffers and putting people at risk.”
Context and Future Outlook
The August data comes at a time of shifting regulatory landscapes. Happy Valley Casino opened in April 2026, meaning Pennsylvania had one more casino operating in August 2026 than it did in August 2025. This increase in physical supply has not yet offset the revenue losses attributed to digital competition.
States without legal iGaming, such as Maryland, Virginia, and New York, remain particularly vulnerable to unregulated online platforms. The AGA maintains that these platforms threaten local jobs and tax revenue by operating outside the legal framework. As prediction markets and sweepstakes models evolve, regulators in the Mid-Atlantic region face increasing pressure to address the gap between legal and illegal gambling offerings.
Why It Matters
The divergence between falling in-person revenues and growing iGaming revenues signals a structural shift in how players in the Mid-Atlantic access gambling products. Operators in states without legal iGaming, such as Maryland and Virginia, are particularly exposed to unregulated sweepstakes and prediction markets. This competition threatens the tax base and employment stability of the legal gaming industry, prompting the AGA to call for federal intervention to curb illegal operators.
Sarah Thompson is an editorial byline used by Casino No Deposits for industry news coverage. Articles published under this byline are summarised from reporting by licensed gambling industry news sources and produced with AI assistance, then published against our editorial rules on accuracy, sourcing and tone. They are not first-hand reporting and do not contain personal player accounts. Our full process, including how bonus listings and ratings are maintained separately by our team, is documented in how we review casinos: https://casinonodeposits.com/how-we-review-casinos/
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