The October edition of our U.S. Sports Betting Market Monitor is now live, with data current through August nationally and September where state-reported data are available.
September NGR rebounded sharply, but underlying demand growth remained modest. Preliminary data show handle growth improving to +2% y/y across the select-state cohort following August’s -5% decline, broadly consistent with 2026 trends outside the World Cup months. Bonusing remained down 22% y/ydespite NFL kickoff, while net hold improved to ~5% against an exceptionally weak prior-year comparison, supporting +65% y/y NGR growth across reporting states.
DraftKings overtook FanDuel in estimated U.S. OSB GGR share for the first time in our post-COVID tracking, moving narrowly ahead in 3Q26 (31.7% vs. 31.4% through August). The milestone caps a multiyear narrowing of FanDuel’s lead and is consistent with DraftKings’ broader execution strength, including its consistently top-ranked performance in EKG’s national hands-on sportsbook app testing. Meanwhile, challengers Hard Rock, Fanatics, and bet365 now collectively control ~21% of estimated U.S. OSB GGR.
Is AI beginning to reshape sportsbook acquisition and retention economics? Despite sustained prediction market competitive spending, BetMGM reported materially improved CPAs and paybacks in 3Q26. We explore whether AI-driven marketing optimization could be contributing to improving acquisition efficiency across the sector. On the product side, our propreitary testing found encouraging early feedback on Hard Rock’s AI Insights, suggesting AI-powered research and bet discovery could become useful customer engagement and retention tools.
BetMGM’s 3Q26 results also offer an early look at how incumbents are adapting to persistent prediction market pressure. OSB handle increased 3% y/y despite a 9% decline in actives, while handle and NGR per active rose 13% and 18%, respectively. The strategy appears to be improving player-level economics without a corresponding easing of PM competitive intensity, although sustained acquisition restraint raises longer-term questions about customer replenishment.
Additional topics this month include:
- Injury protection economics: Seven of eight major sportsbooks now offer some form of coverage. Our channel checks suggest FanDuel’s 3% fee could eventually become an industry standard, even as Fanatics pushes free, full-game protection.
- NFL in-play performance: New BettorMetrics benchmarking shows average moneyline uptime improving 9.3pp to 86.4%, led by bet365, with average overround largely unchanged.
- Prediction market demand: Our PMI Databook Dashboard provides daily sport- and league-level visibility unavailable in traditional state-reported OSB data, with NFL and college football accounting for more than 40% of recent U.S. sports PM Contract Volume.
