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DraftKings increased spending on casino promotions and marketing in the third quarter. During that quarter, its New Jersey casino revenue grew more slowly than the wider state market.
In its Nov. 5 business update, the company reported 76% more new casino customers across its markets than a year earlier. It highlighted exclusive games and new rewards alongside its promotional spending.
DraftKings Casino generated $144.9 million from July through September. That was up 0.5% from $144.2 million a year earlier. The state’s online casino market grew 9.8% to $811 million.
As a result, DraftKings’ quarterly market share fell to approximately 17.9%. That compares with 19.5% in the third quarter of 2025. Both percentages are based on Division of Gaming Enforcement data.
September rebound follows revenue declines in July and August
DraftKings ended the quarter with $53.3 million in September casino revenue, its strongest month of the quarter. That was a 9.9% increase from September 2025 and a 22.3% improvement over August.
July revenue fell 1.2% year over year to $48.1 million. August revenue declined 7.5% year over year to $43.5 million.
DraftKings remained New Jersey’s second-largest individual online casino brand in all three months. FanDuel led with $176.2 million over the quarter. That left a revenue gap of approximately $31.3 million between the two brands.
BetMGM, reported separately from Borgata, followed with $105.1 million in quarterly casino revenue. That was up 11.4% from $94.3 million a year earlier. The increase narrowed DraftKings’ lead over the third-place brand to $39.8 million. The lead was $49.9 million in the third quarter of 2025.
DraftKings generated $423 million through September. That was just 0.8% more than in the first nine months of 2025. Statewide internet gaming revenue rose 13.2% to $2.40 billion through September.
DraftKings reports higher sportsbook margins
Across its markets, DraftKings’ sportsbook net revenue increased 36% year over year in the third quarter. That compares with 2% growth in its casino business.
Sportsbook handle, the total amount customers wagered, rose 12%. The company said the World Cup boosted wagering. It said that benefit was offset by one fewer week of NFL and college football games compared with the previous year.
DraftKings’ sportsbook net revenue margin rose to 6.4%. That was up approximately 1.2 percentage points from a year earlier. The company also reported a hold rate above 11% and a three-percentage-point increase in its parlay mix.
Promotions weigh on net revenue as customer activity increases
Across DraftKings’ casino business, gross revenue grew 7% in the third quarter. Net revenue increased 2% to $460.9 million from $451.3 million. The company attributed the slower growth to promotions for new customers.
Net casino revenue for the first nine months of 2026 increased 6.1% to $1.38 billion. That compares with $1.30 billion a year earlier.
The additional marketing and promotional investment continued into the fourth quarter. DraftKings subsequently reported 12% gross casino revenue growth in October. That compares with the third quarter’s 7%.
DraftKings also reported a 24% year-over-year increase in October paid active days. Paid active days combine the number of active customers with the days they engaged with the app. The measure reflects overall activity rather than individual player numbers.
DraftKings expects its casino investments to produce faster revenue growth in 2027.
