TLDR
- US online casino revenue rose 12% year over year in Q3 2026, down from 16% in Q2 and 19% in Q1, according to Citizens Equity Research.
- FanDuel stayed the top iGaming operator, but its market share fell to 25.1% from 26.6%.
- BetMGM’s iGaming share dropped for a sixth straight quarter to 18.6%, while Fanatics grew to 5.2%.
- Sports betting handle rose 7% in Q3, even with one fewer week of NFL games.
- Citizens analyst Jordan Bender said prediction markets may be bringing new users to sports betting.
The US online casino market posted its slowest growth rate of 2026 in the third quarter. Sports betting held up better, according to a new report from Citizens Equity Research.
The report covers results from July through September. It tracks revenue and market share for the largest licensed operators in the country.
Online Casino Revenue Growth Slows
iGaming industry revenue rose 12% from the same period last year. That compares with 16% growth in the second quarter and 19% in the first quarter.
September showed a small improvement. Revenue grew 12% that month, up from 11% in August.
FanDuel remained the largest iGaming operator. However, its market share fell to 25.1% from 26.6% a year earlier.
DraftKings saw its share drop to 22.2% from 24.3%. Still, that was an improvement from its 20.9% share in the second quarter.
Citizens said the gain likely came from changes DraftKings made to its business model in the spring. Analysts also said the effect of bet365 and Hard Rock launching in West Virginia and Michigan was starting to fade.
BetMGM’s market share fell to 18.6% from 20.7%. This was its sixth straight quarterly decline.
Fanatics grew its iGaming share to 5.2% from 3.9% a year ago. That left it just below its second quarter share of 5.4%. The ranking of the biggest operators did not change.
Sports Betting Handle Keeps Growing
Sports betting results were stronger. Same-store handle, or the total amount wagered, rose 1% year over year in September.
That was the best monthly growth of 2026 outside June and July, when the World Cup boosted betting. For the full third quarter, handle rose 7%, even with one less week of NFL games.
DraftKings held the largest share of sports betting handle at 37.6%, up from 37.3%. FanDuel’s handle share rose to 32.8% from 31.4%, but its share of gross gaming revenue slipped to 35.4% from 37.7%.
Fanatics’ handle share fell to 9.9% from 11.2%. Its gross gaming revenue share rose to 8.8% from 7.3%.
BetMGM’s margin improved to 10.2% from 9.6%. Caesars’ margin fell to 6.9% from 7.6%, while bet365 kept a 9.4% margin.
The results support an earlier view from Citizens analyst Jordan Bender that prediction markets are not a major threat to sportsbooks. Bender said marketing by prediction platforms may be introducing new people to sports betting instead of pulling away existing customers.
Analysts expect sportsbook handle to rise in the fourth quarter as the NFL season continues.
