US iGaming growth moderated to 12% year-on-year during the third quarter of 2026, representing its weakest expansion rate on record. According to comprehensive data published by Citizens, the growth rate declined from the 16% witnessed across each of the first two quarters of the year, a deceleration that market analysts noted was largely in line with expectations.
Meanwhile, the sports betting sector held steady, supported by increased consumer spending driven by the World Cup in the early portion of the quarter.
Operator market share shifts in iGaming
In the iGaming vertical, Flutter-owned FanDuel maintained its position as the market leader with a total share of 25.1%, though this represented a contraction from 26.6% during the same period last year. The brand has experienced a consistent quarter-on-quarter decline in iGaming market share throughout 2026. DraftKings experienced one of the most substantial year-on-year drops, with its market share falling from 24.3% to 22.2%. However, this figure marked an increase from 20.9% in Q2, representing the operator’s first sequential quarterly growth in two years.
Elsewhere among top-tier brands, BetMGM’s iGaming market share slipped from 20.7% to 18.6%, marking its sixth consecutive quarter of decline, while Caesars saw its share contract from 7.1% to 6.4%. Conversely, Fanatics achieved the highest growth rate of any individual operator, expanding its market share from 3.9% to 5.2%, just shy of the 5.4% recorded in Q2. Other operators registering gains during Q3 included Rush Street, whose share advanced from 6.8% to 7.4%, and bet365, which grew from 0.4% to 1.7% following successful recent launches in Michigan and West Virginia.
Sports betting maintains steady margins
Turning to sports betting, gross gaming margin across the market remained level year-on-year at 9.6% amid a mixed performance among leading operators. DraftKings retained the top spot in terms of overall market share, finishing narrowly ahead of long-standing rival FanDuel. DraftKings saw its handle share climb from 37.3% to 37.6%, while its gross gaming revenue (GGR) share edged up from 34.9% to 35.4%.
For FanDuel, handle share increased from 31.4% to 32.8%, whereas its GGR share moderated from 37.7% to 35.4%. Nevertheless, FanDuel sustained a superior gross gaming margin of 10.4%, compared to DraftKings’ 9.5%. Fanatics emerged as the closest challenger with a quarterly handle share of 9.9%; although its handle share dipped slightly from 11.2%, its GGR share jumped from 7.3% to 8.8%.
Meanwhile, Caesars recorded declines across both revenue and handle share, bringing its margin down from 7.6% to 6.9%. Bet365 maintained a steady margin of 9.4% alongside increases in handle and GGR share, while BetMGM saw its overall margin rise from 9.6% to 10.2% as an increase in GGR share helped offset a lower handle share.
