The US online casino market recorded its slowest year-on-year growth rate on record in the third quarter of 2026, according to data from Citizens. iGaming growth reached 12%, down from 16% in each of the first two quarters of the year. The slowdown was in line with analysts’ expectations, while sports betting performance remained relatively stable.
FanDuel retained its position as the leading US iGaming operator, although its market share fell to 25.1%, compared with 26.6% in Q3 2025. The Flutter-owned brand has experienced declining market share in each quarter of 2026 so far.
DraftKings also lost ground year on year, with its share falling from 24.3% to 22.2%. However, the operator improved on its second-quarter figure of 20.9%, recording its first sequential market-share increase in two years.
BetMGM continued to struggle, with its iGaming share declining from 20.7% to 18.6%. This marked its sixth consecutive quarter of decline. Caesars also recorded a reduction, from 7.1% to 6.4%.
Fanatics delivered the strongest growth among individual operators. Its iGaming market share increased from 3.9% to 5.2%, following a second-quarter figure of 5.4%. Rush Street Interactive also expanded its position, moving from 6.8% to 7.4%.
Bet365 recorded particularly notable progress, with its market share rising from 0.4% to 1.7%. Its expansion into Michigan and West Virginia contributed to the increase.
Sports Betting Holds Steady
The US sports betting market presented a more stable picture, with gross gaming margin remaining unchanged year on year at 9.6%.
DraftKings maintained a narrow lead over FanDuel in betting handle share, increasing from 37.3% to 37.6%. Its share of gross gaming revenue (GGR) also edged up, from 34.9% to 35.4%.
FanDuel’s handle share rose from 31.4% to 32.8%, but its GGR share fell from 37.7% to 35.4%. Both operators ended the quarter with a GGR share of 35.4%, although FanDuel achieved a higher gross gaming margin of 10.4%, compared with DraftKings’ 9.5%.
Fanatics remained the next closest challenger, recording a 9.9% share of betting handle. Its GGR share improved from 7.3% to 8.8%, despite a decline in handle share from 11.2%.
Bet365 maintained a 9.4% margin, while BetMGM’s margin increased from 9.6% to 10.2%. Caesars, meanwhile, experienced declines in both handle and revenue share, with its margin dropping from 7.6% to 6.9%.
The figures highlight a widening difference between the slower-growing online casino segment and the more stable sports betting market, alongside continued competition among major operators.
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