Major Sportsbooks' Online Casino Expansion - How the Business Adapts

Over recent years the US sports betting market has exploded in value, hitting nearly $17 billion in revenues for operators across 40 states. But alongside the rise in sports betting, online casinosThere are occasions when we here at ReadyBetGo want to bring you interesting facts about the gambling industry  When something catches our eye, we will publish it for your enjoyment. 
  have been a less talked about part of the market. Although only legal in eight states online casino gambling in the US made $10.7 billion in revenue in 2025. And that was 28% up on the previous year. 

So it's no wonder that the dominant sportsbooks are concentrating more and more on casinos. Outside of the US the picture is even more divergent. In Canada, where US giants FanDuel and DraftKings are soon expanding into Alberta online casinos are far more popular than sportsbooks even - which is a win-win for operators. So why is that happening? 

FanDuel and DraftKings Show the US Gambling Markets' Continued Evolution 

FanDuel began life in Edinburgh, Scotland, in 2009 as a gambling fantasy sports service. It hit the US and quickly became massive, where the model was known as Daily Fantasy Sports. However, no sooner had regulators got to grips with this new form of (not) gambling - actual sports betting started seeing regulation in many states.

So the big operators, including FanDuel and DraftKings suddenly pivoted. They used their experience in and brand recognition from Daily Fantasy Sports to quickly gain control of the nascent sports betting market. This is the way FanDuel, now owned by European betting giant Flutter Entertainment, became the dominant player in a new and growing multi-billion dollar market.

However - fast forward a few years and things had begun to change. With fewer new states opening regulated betting markets, and many states clamping down on advertising or putting in place tighter regulations, growth became harder to chase. Investors started demanding profits. 

Therefore more consistent revenues of online casinos, have been a focus. Although only legal in eight states, online casino revenues are much more reliable for operators. 

For example, bettors in the US wager $100+ billion a year. But sportsbooks, on average, keep about 10% of that as revenue. And far less as profits, after state and federal taxes. That number also changes depending on sports results and betting patterns. 

Whereas online casinos, are far more predictable. So, in the states that do have them, FanDuel and DraftKings have been focusing on pushing the casino side of their game. 

US online casinos, from which around 60% of revenues come from slots, grew 25% in March 2026. Compared to 6.4% fall in revenues for sports betting. 

The market is changing, but customers still use resources like Casino.org to find the best available options for slot games. Because even though sportsbook brands may have recognition on their side, players look at a variety of factors like exact game selections, bonuses and payment speeds to make an informed choice. 

All of this goes to show how quickly big gambling giants are to adapt to regulation and new ways of playing. From fantasy sports to sports betting to online slots and casinos. 

BetMGM Shows Why this Market Goes Both Ways 

Interestingly though, there are cases where the market goes both ways. Although FanDuel and DraftKings have dominated market share in the sportsbook sector (around 80% nationally between them) the existing giant casino operators of the US - mostly in Las Vegas - haven't rolled over to the competition. 

Probably the most successful of these legacy gambling operators is MGM Resorts International's BetMGM. It made the decision from its launch in 2020 to seek expertise in online gambling, by running its online betting and casino division as a joint 50/50 collaboration with European online gambling giant Entain.

By taking on experience from the established and mature European markets, BetMGM had the best chance of trading on MGM's established US associations with gambling and hospitality. 

And although it hasn't managed to crack the sports betting dominance of FanDuel and DraftKings, it has had a very respectable performance. The operator is confidently among the leading pack behind the two giants, in both sports betting and online casinos. Its online casino business grew 24% in 2025 although sports betting revenue also grew by even further at 63%. 

Cross-selling is an important part of any business, and by combining regulated sports betting and online casinos in states that have both, operators can maximise potential revenues. Not only that MGM can also cross sell its physical casino and hospitality properties across the US through its online channels - something FanDuel and DraftKings can't do. 

To this end, BetMGM has even worked with sports leagues and other partners to make exclusive licensed slot games with sports betting fans in mind. 

BetMGM actually illustrates another point nicely. Big brands in one space that suddenly see a change in market conditions, can leverage their market awareness and brand presence to gain a business advantage in the new one. Prediction markets could be the new frontier in this regard, although online casinos in the US are still growing steadily.