Q3 operators report iGaming revenue growth as costs pressure earnings
Business2 min read
A trade-press analysis of Q3 2026 results found revenue growth across several major operators, while sportsbook outcomes, promotional spending and expansion costs weighed on earnings. DraftKings reported 16% revenue growth to $1.33bn but cut full-year profitability guidance, while BetMGM increased adjusted EBITDA to $86m after revenue rose 7%.
Flutter and Betsson reported lower adjusted EBITDA despite revenue growth in Q3 2026, while DraftKings cut its full-year profitability guidance. BetMGM more than doubled adjusted EBITDA to $86m after revenue rose 7%, while Super Group reported an 8% earnings increase and 10% revenue growth to $611m.
Adverse sporting outcomes affected Flutter's US and international divisions, while Entain said results favourable to customers partly countered stronger online gaming growth. Super Group estimated that customer-friendly results cost it approximately $40m in Q3 revenue and $25m in adjusted EBITDA. Betsson also faced sportsbook margin pressure. Its betting turnover grew 8% year on year, even as its sportsbook margin declined to 8.1% from 8.8% a year earlier.
Entain’s online gaming net revenue rose 8%, while sports betting fell 3%. At Betsson, casino revenue climbed 14% to €253.5m and sportsbook revenue rose 1% to €73m. Flutter’s iGaming revenue grew 8%, compared with 4% growth for its US sportsbook operations. BetMGM’s online sports revenue rose 7% to $216m, and its sportsbook hold improved year on year.
Betsson’s Latin American revenue rose more than 50%. The operator credited strong customer activity and campaigns connected to the summer FIFA World Cup for particularly strong results in Peru and Argentina.
Entain reported a 36% fall in Brazilian net gaming revenue, attributing it to increasingly difficult market conditions ahead of the ban. Excluding Brazil, its online net gaming revenue rose 5% in Q3, compared with 3% growth across its online business. Chief executive Stella David said she expected Brazil's online gambling market to reopen in some form and that Entain planned to return with Sportingbet.
Flutter's revenue in Brazil dropped 31% ahead of its closure. The group stopped operating in the country in late September and booked an $873m impairment charge on its Brazilian business. It decided to close Betfair Brazil and consolidate its operations around Betnacional.
DraftKings increased its planned 2026 Predictions investment to $650m–$700m, prompting a sharp cut to its full-year adjusted EBITDA guidance. It expects the product to bring in $650m–$750m in revenue during 2027; more than 1.6 million customers had engaged with it year to date. Flutter's FanDuel Predicts posted $119m in Q3 trading volume, a 102% increase from the preceding quarter. Its market-making business is active on several prediction market exchanges.