**Trader sentiment for the 2026 US sports betting handle reflects a maturing market where traditional sportsbook growth has slowed amid rising competition from prediction markets.** In 2025, regulated commercial sportsbooks processed roughly $167 billion in handle, an 11% increase year-over-year, driven by mobile expansion and major leagues like the NFL. For 2026, projections show flattening or modest gains in regulated NFL handle—around $29.5–31.7 billion—partly because platforms such as Kalshi and Polymarket have captured significant sports event volume, including an estimated 4–21% displacement in overlapping states through combos, parlays, and in-play betting. Incremental contributions from recent launches like Missouri (December 2025) and ongoing operator marketing are providing some offset, while retail channels continue to shrink to about 1% of total handle. Key upcoming variables include the remainder of the NFL and college football seasons, potential additional state expansions, and any regulatory responses to prediction market overlap. Overall volume trends hinge on whether underlying demand growth outpaces shifts away from licensed sportsbooks.