US iGaming Growth Slows to 12% in Q3, a Record Low

The US online casino market grew 12% year over year in the third quarter of 2026. This rate was well below the 16% recorded in the first two quarters, making it the weakest growth the market has ever posted. Analysts largely viewed the slowdown as an expected development.

Citizens' published data shows that market leader FanDuel remained in first place with a 25.1% market share. However, the company's share was 26.6% in the same period last year, and FanDuel lost share in every quarter this year. DraftKings' share fell from 24.3% to 22.2%. Even so, this figure is above the 20.9% it held in the second quarter, so the company recorded its first back-to-back increase in two years.

BetMGM's share declined from 20.7% to 18.6%, marking the sixth consecutive quarterly decline. Caesars' share also dropped, from 7.1% to 6.4%. Fanatics, on the other hand, rose from 3.9% to 5.2%, posting the strongest growth of any single operator. Rush Street and bet365 also gained share. bet365 raised its share from 0.4% to 1.7% on the back of its launches in Michigan and West Virginia.

In sports betting, the gross gaming margin held steady at 9.6% year over year. DraftKings kept the top spot in both betting handle and gross gaming revenue. FanDuel's handle share grew while its revenue share fell, but it still had a higher gaming margin at 10.4%. Fanatics ranked third with a 9.9% handle share and increased its revenue share from 7.3% to 8.8%.