SALT Challenges for a Growing Gaming Industry

This article was originally published in the Journal of State Taxation.

The U.S. gaming industry is undergoing a period of sustained growth. The expansion of legalized online sports betting, increased interest in online casino offerings, and emergence of gaming-adjacent digital products have reshaped how gaming companies operate and generate revenue. According to the American Gaming Association, commercial gaming revenue in the U.S. for the first 11 months of 2025 was almost $71.5 billion (an 8.7% increase from the same time in 2024), and Quantumrun Foresight lists 2025 eGaming revenue estimates for North America to be almost $81 billion. At the same time, states are under continued budget pressure and are refining tax regimes to capture revenue from the expanding gaming market. Those trends have combined to create a complex and evolving state and local tax landscape for gaming companies.