US iGaming growth slows to 12 percent as sports betting holds

Citizens Equity Research recorded a 12 percent year-on-year revenue increase for the US online casino market in the third quarter of 2026, down from 16 percent in Q2 and 19 percent in Q1, according to a report released Monday.

FanDuel held the leading iGaming position with a 25.1 percent market share, falling from 26.6 percent a year earlier. DraftKings dropped from 24.3 percent to 22.2 percent. BetMGM recorded its sixth consecutive quarterly decline, finishing at 18.6 percent. Fanatics was the only major operator to gain ground, rising from 3.9 percent to 5.2 percent.

Sports betting produced steadier numbers. Same-store handle grew 7 percent across the third quarter despite one fewer week of NFL play. DraftKings led on handle share at 37.6 percent; FanDuel followed at 32.8 percent.

Citizens analyst Jordan Bender argued that prediction market platforms have not drawn customers away from licensed sportsbooks and may be expanding the total addressable base by introducing new participants to sports wagering.

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Diana Pemberton

Political Markets Analyst

Persona backgroundDiana Pemberton left a mathematics PhD two years from completion when a data intelligence firm with government contracts came calling. She wanted to see how the system actually worked. She spent six years finding out. In 2022 she produced an analysis that was correct in every detail. It was operationally deprioritised in September.