iGaming Is Outperforming Sports Betting in 2026: What the Numbers Mean for Bettors

Online casino gaming is beating online sports betting by a wide margin in North America in 2026, and the gap appears to be growing. A May 18 investor note from Macquarie Equity Research analyst Chad Beynon found that iGaming-centric operators dramatically outperformed Q1 expectations while sportsbook-heavy companies like DraftKings and Flutter Entertainment’s FanDuel reduced full-year guidance. The analysis points to prediction market competition as a significant factor suppressing sports betting’s growth trajectory.

Rush Street Interactive, which operates BetRivers and is the most iGaming-focused of the major North American digital gaming companies, reported record Q1 2026 results. Revenue came in at $370.4 million, a 41 percent year-over-year increase. Monthly active users in its North American iCasino markets surged 62 percent. The company raised its full-year revenue guidance to $1.49 billion to $1.54 billion and lifted adjusted EBITDA guidance to $230 million to $250 million, reflecting management’s confidence that the iGaming advantage will continue through the year.

The Prediction Market Impact on Sportsbooks

DraftKings and FanDuel both beat their Q1 revenue guidance, but both also trimmed full-year EBITDA outlooks, a combination that reflects a more competitive environment for sports wagering dollars. Macquarie’s Beynon attributed this partly to the disruption that prediction market platforms are creating in the sports betting space. Platforms like Kalshi and Polymarket, as well as prediction market products launched by DraftKings and FanDuel themselves, have introduced a new competitive layer that fragments the pool of sports bettors.

The structural dynamic is straightforward: online casinos have no prediction market equivalent. A bettor who switches from a traditional sportsbook to a prediction market platform for their sports wagering is no longer revenue for DraftKings or FanDuel. But that same bettor is still likely to use a licensed online casino for slots or live dealer games if they want that experience. RSI’s CEO Richard Schwartz has publicly framed the prediction market disruption as a tailwind for the iGaming-first strategy rather than a threat.

What This Means for Bettors

For sports bettors, the industry’s financial pressures can translate into real-world changes. Sportsbooks facing margin pressure from prediction markets may be less aggressive with promotions, while the competition for sports betting wallets intensifies. DraftKings and FanDuel are both investing heavily in their own prediction market products, which means the competitive disruption they face is partly self-inflicted but strategically necessary.

The Senate held a major hearing on prediction market regulation on May 20, and potential federal legislation could reshape the competitive landscape significantly. If Congress imposes state-level compliance requirements on prediction markets, traditional sportsbooks could regain competitive ground. In the meantime, the Macquarie data suggests that the online casino side of the business is where the real growth story is playing out in 2026.