Slots and Casino Payouts 101

Casinos all around the United States have reported a decrease in visitors for the month of July, and July has in fact been called the second-worst month of this year when it comes to foot traffic in casinos.

Casino visitation slowed sharply in July, marking the second-worst month for the US commercial gaming industry this year, according to data from Jefferies Equity Research. Foot traffic was down nearly 10% nationwide compared to July of 2024, raising concerns about Las Vegas' short-term prospects.

Sharp declines across major markets

David Katz, Jefferies Managing Director, reported that the July downturn was only eclipsed by February's slump in 2025. The slowdown was most pronounced in Illinois, where casino entries plunged more than 13% year over year. Atlantic City's nine casinos saw an 8.5% drop, while Detroit's three properties experienced an 8% decline. Nevada properties matched the national average, but the Strip's muted summer atmosphere has been drawing attention online.

Overall, casino visitation across the US remains nearly 20% below pre-pandemic 2019 levels. Analysts attribute these figures to a mix of macroeconomic challenges, changing consumer behavior, and competitive pressures from online gambling.

Las Vegas feels the pinch

Despite Las Vegas ending a four-month gross gaming revenue (GGR) decline in June, the July numbers - yet to be officially reported - are expected to show another negative turn. Over the past 12 months, GGR in Clark County is down by 1%, with the Strip's casino win 3% lower.

"Regional gaming is better positioned for growth in the near term compared to Las Vegas, where expectations for the Strip are confirmed to be low," noted Katz. This sentiment reflects a broader belief that regional casinos, which rely more on local markets than tourism, could rebound faster in the months ahead.

Economic signals offer mixed outlook

The US economy showed signs of life in the second quarter. According to the Bureau of Economic Analysis, real gross domestic product (GDP) grew by 3% after contracting by 0.5% in the first quarter of 2025. The gains were largely driven by a reduction in imports and stronger consumer spending, partially offset by weaker investment and exports.

However, the BEA also reported that inflation - measured by the price index for gross domestic purchases - rose 1.9% in the same quarter. While moderate, this uptick could weigh on discretionary spending, particularly for leisure activities such as casino gaming.

Online competition adds pressure

A growing concern for the brick-and-mortar industry is the rise of illegal, unregulated online gambling platforms. The American Gaming Association recently estimated that these operators account for nearly one-third of the gaming market in the US, depriving states of more than $15 billion annually in tax revenue.

"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 Bill Miller, AGA President and CEO. "It's time for a national crackdown on the pervasive illegal market that is draining state coffers and putting people at risk."

The figures from the AGA suggest that illegal online casinos and sportsbooks collectively generate $23.6 billion in annual revenue. Analysts believe that part of the decline in in-person casino visits may be linked to the convenience and accessibility of these offshore sites, which often operate without the same regulatory oversight as licensed properties.

While the remainder of 2025 remains uncertain, analysts are watching closely to see whether August will offer signs of stabilization. With economic conditions in flux and competitive pressures mounting, casino operators - particularly in Las Vegas - face the challenge of drawing visitors back through promotions, events, and expanded entertainment offerings. For now, the data suggest that regional markets may recover more quickly, while the Strip will need a sustained boost in both tourism and local spending to regain its pre-slowdown momentum.

The National Council on Problem Gambling has recently requested arbitration on the issue of the 1-800-GAMBLER hotline number, which continues to be a source of contention between the NCPG and the Council on Compulsive Gambling of New Jersey. The NCPG has also filed for a restraining order that will keep the hotline running until August 26.

The National Council on Problem Gambling has initiated arbitration proceedings in its ongoing dispute with the Council on Compulsive Gambling of New Jersey over control of the national 1-800-GAMBLER hotline. The move comes after months of back-and-forth between the two organizations, which share a contractual history surrounding the use of the widely recognized problem gambling resource.

Under the original agreement, NCPG licensed the right to use 1-800-GAMBLER nationally from CCGNJ for $150,000 annually. The three-year deal terminated in May, and the NCPG says it exercised its option to extend the arrangement. Citing a lack of progress in negotiations, NCPG turned to the American Arbitration Association to resolve the dispute "in accordance with the provisions of the original license agreement."

In addition, the NCPG secured a temporary restraining order from a New Jersey court to prevent CCGNJ from shutting down the hotline. The order keeps the service operational until at least August 26, giving both sides time to address their differences in court.

NCPG stresses service continuity

Cait Huble, the NCPG's Director of Communications, confirmed the arbitration request, noting that the organization's primary concern is preventing any interruption to the hotline's nationwide availability. "Over the past three years, the National Problem Gambling Helpline, anchored by 1-800-GAMBLER, has made tremendous strides in expanding access, providing more effective assistance, and reaching more diverse communities," said Derek Longmeier, NCPG Board President. "As we continue this critical work, NCPG remains dedicated to protecting the integrity of the helpline and upholding a national network that is consistent, reliable, and responsive to those in need of problem gambling support."

According to court filings in Mercer County, NCPG previously attempted to initiate arbitration on several occasions, but claims those requests went unanswered by CCGNJ. The two organizations are now set to face each other in court in the coming weeks.

Limited public comment from parties involved

While NCPG has been vocal about the need for swift resolution, CCGNJ has not publicly commented on the matter. The AAA, meanwhile, told SBC Americas it could not discuss details of ongoing cases, citing confidentiality rules that restrict information to directly involved parties and their representatives.

The dispute comes at a time when the demand for accessible problem gambling resources is growing, particularly as legal sports betting and online casino gaming continue to expand across the United States.

Industry groups warn against service disruption

The gambling industry's major trade organizations have weighed in, urging a quick and amicable resolution. Earlier this month, the American Gaming Association and the Responsible Online Gaming Association issued a joint statement expressing concern over the hotline's future.

ROGA represents eight of the largest US online gambling operators - BetMGM, Bally's, bet365, Fanatics, DraftKings, FanDuel, PENN Entertainment, and Hard Rock Digital - collectively responsible for more than 90% of the country's online wagering market.

"Any disruption to the 1-800-GAMBLER operations - or worse, a degradation of the helpline's capacity to deliver timely, culturally competent, and clinically appropriate referrals - would significantly endanger the ability for individuals or friends and family members of individuals who may be experiencing problems to learn more and access care," ROGA and the AGA said. They warned that a lapse in service could cause "widespread consumer confusion" and undo years of awareness campaigns by operators, regulators, and advocacy groups.

The court's temporary restraining order buys both sides a short window to find common ground, but the clock is ticking. If no agreement is reached before the August 26 deadline, the matter could escalate, potentially affecting the availability of one of the nation's most widely recognized gambling help resources.

For many, the hotline represents a lifeline that must remain intact - regardless of contractual disputes - to ensure that individuals struggling with problem gambling can find the support they need without interruption.

Brand-new research from the American Gaming Association has found that illegal and unregulated gambling in the United States is still on the rise, despite efforts from legislators and various authorities to curb its growth. In fact, the study found more than $673 billion was wagered annually by Americans, and illicit platforms still account for almost 1/3 of the US gambling market.

A new report and analysis by the American Gaming Association reveals that illegal and unregulated gambling operations continue to hold a significant share of the US gaming market, siphoning billions from licensed operators and state governments.

According to the report, Americans wager an estimated $673.6 billion annually with illicit operators - ranging from offshore sportsbooks to unregulated gaming or skill machines - denying communities vital resources for public safety, infrastructure, and education. The study estimates that states lose $15.3 billion in annual tax revenue to the illegal market.

Illegal gambling on the rise

The AGA notes that the illegal gambling market has grown 22% since its last study in 2022, fueled by a sharp increase in unregulated online gaming, the proliferation of so-called 'skill' machines, and ongoing illegal sports betting. Despite growth in the legal gaming sector in recent years, illicit operations still command 31.9% of the total US gaming market.

The report estimates the illegal market generates $53.9 billion annually in revenue for offshore betting networks and unlicensed machine operators. "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 Bill Miller, AGA's President and Chief Executive Officer. "It's time for a national crackdown on the pervasive illegal market that is draining state coffers and putting people at risk."

The 'skill' machine problem

'Skill' machines, which are unregulated devices often found in restaurants and bars, and even convenience stores - are one of the fastest-growing threats to legal gaming, the report says. There are now over 625,000 of these machines in operation nationwide, representing a 7.7% rise since 2022.

These machines generate $30.3 billion annually while costing states $9.5 billion in tax revenue. Without regulatory oversight, they pose significant risks to consumers, including lack of responsible gaming measures and potential links to criminal activity.

Illegal iGaming growth

The study also highlights a troubling surge in illegal online casino activity. Revenue from unauthorized online slots and table games has grown to $18.6 billion, an increase of almost 38% from 2022.

Even more concerning is a shift in player behavior: the share of iGamers who play exclusively on legal sites has dropped from 52% back in 2022 to a mere 24% currently. Meanwhile, the percentage of players who use both legal and illegal platforms has nearly tripled over the past three years, now at 49%. Although illegal operators hold a smaller share of the total iGaming market compared to three years ago, the rapid growth in mixed-site play signals a persistent challenge for regulators.

The analysis finds that Americans wagered roughly $84 billion with illicit bookmakers and offshore sportsbooks in the last year, producing $5 billion in revenue for unlicensed operators and causing $1 billion in lost tax revenue.

Still, there are some signs of progress: sports bettors using only illegal sources has dropped by one-third since 2022, and the illegal market's share of total US sports betting revenue has fallen from 36% to 24%. However, one in ten sports bettors still place wagers exclusively through illegal channels.

"These bad actors operate in the shadows with zero consumer protections, no responsible gaming obligations, and no economic return to the communities they exploit," Miller said. "Combating them requires not only stronger US enforcement, but also continuing to work closely with our international partners to shut down offshore operators and hold them accountable."

The AGA's findings are based on research conducted by The Innovation Group, which surveyed 2,454 adults on their gambling habits over the past year with both legal and illegal operators. The study also analyzed publicly available data on the size of the legal US gaming market and certain state-level machine markets.