US iGaming growth slows, sports betting stays steady

The US online casino market slipped to its lowest growth rate in the third quarter of 2026. According to Citizens Equity Research, iGaming revenue rose 12 percent compared with the same period last year. This rate fell well short of the 16 percent growth in the second quarter and the 19 percent growth in the first quarter. In September, growth picked up slightly to 12 percent from 11 percent in August.

Market share figures pointed to significant shifts. FanDuel kept its leading position with 25.1 percent, although its share declined from 26.6 percent a year earlier. DraftKings' share fell from 24.3 percent to 22.2 percent, but recovered from 20.9 percent in the second quarter. BetMGM's share dropped to 18.6 percent, marking its sixth consecutive quarterly decline. Fanatics was the standout company of the period, raising its share from 3.9 percent to 5.2 percent.

The picture is more positive for sports betting. In September, same-store betting handle rose 1 percent year over year, the strongest monthly growth outside the June and July period affected by the World Cup. Handle rose 7 percent in the third quarter. Citizens analyst Jordan Bender argues that prediction markets do not pose a serious threat to sports betting companies. In his view, the aggressive marketing of these platforms is introducing new people to sports betting rather than pulling existing users away. Analysts expect betting handle to increase in the fourth quarter as the NFL season progresses.