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State of Play’s TL;DR
- US online casino growth eased to its weakest pace of 2026 in Q3.
- Sportsbook handle, however, remained stable, and analysts see more betting activity ahead in Q4.
US online casino growth slowed to its weakest pace of 2026 in the third quarter, while sports betting remained comparatively steady.
Citizens Equity Research said online casino revenue rose 12% year over year in Q3, down from 16% in Q2 and 19% in Q1.
September showed a slight improvement from August, with online casino revenue growth ticking up to 12% from 11%. Even so, the broader trend points to a cooler expansion rate for online casinos after a stronger start to the year.
FanDuel stays on top as online casino shares shift
FanDuel Casino remained the top online casino operator in Q3 with a 25.1% market share, though that was down from 26.6% a year earlier. DraftKings also trailed its year-ago position, falling to 22.2% from 24.3%, but it improved from 20.9% in Q2.
Citizens said DraftKings’ rebound likely followed business-model adjustments made during the spring. The research note also said the effect of newer launches by bet365 Casino and Hard Rock Bet Online Casino in West Virginia and Michigan was starting to fade.
BetMGM Casino’s share slipped to 18.6% from 20.7%, marking its sixth straight quarterly decline. Fanatics Casino moved the other direction, growing to 5.2% from 3.9% a year earlier and staying near its 5.4% share from Q2.
Sports betting handle holds up, with Q4 growth expected
On the sportsbook side, same-store handle rose 1% year over year in September, its strongest monthly growth of 2026 outside June and July. For the full quarter, sports betting handle increased 7% despite one fewer week of NFL play.
DraftKings Sportsbook posted the largest share of sports betting handle at 37.6%, up slightly from 37.3% a year earlier. FanDuel Sportsbook’s handle share also increased, rising to 32.8% from 31.4%, although its gross gaming revenue share fell to 35.4% from 37.7%.
Fanatics Sportsbook’s handle share declined to 9.9% from 11.2%, but its GGR share improved to 8.8% from 7.3%. BetMGM Sportsbook’s margin rose to 10.2% from 9.6%, while Caesars Sportsbook’s margin fell to 6.9% from 7.6%. Bet365 held a 9.4% margin.
Citizens analyst Jordan Bender said prediction markets do not appear to be a significant threat to sportsbooks. Analysts also expect sportsbook handle to grow in Q4 as the NFL season continues.
Based on reporting by Deyan Dimitrov for Gambling News.
