DraftKings increased iGaming customer acquisition by 76% from a year earlier in the third quarter, while its gross iGaming revenue rose 7%. Net iGaming revenue grew more slowly, by 2%, reaching $460.9 million for the quarter compared with $451.3 million a year earlier.
The company attributed the gap between gross and net revenue growth to heavier promotional spending aimed at welcoming new customers. In its Nov. 5 shareholder letter, DraftKings described the spending as part of a “deliberate, multi-quarter plan to accelerate our iGaming business,” saying it increased marketing and new-customer promotions during the quarter and continued the investment into the fourth quarter.
The casino operation generated $1.38 billion in net revenue over the first nine months of 2026, up 6.1% year on year. DraftKings said it had also revamped its iGaming offering, adding exclusive Cashingo content as well as new rewards and merchandising.
In Michigan, where DraftKings operates through the Bay Mills Indian Community, its online casino produced $132.2 million in gross receipts from July through September. Monthly receipts rose from $43.1 million in July to $44.3 million in August and $44.8 million in September, the latter 10.9% above September 2025.
DraftKings finished third in the state’s online casino market in each of the three months, behind FanDuel and BetMGM. Its quarterly receipts represented about 14.6% of Michigan’s $906 million in total online casino gross receipts.
The Michigan Gaming Control Board recorded $300.2 million in statewide iGaming gross receipts for September alone, within combined iGaming and online sports-betting receipts of $355.7 million. Michigan had 15 authorized iGaming operators at the time, all of which offered online casino products.
DraftKings’ October gross casino revenue grew 12% from a year earlier, faster than the third-quarter rate, while paid active days rose 24%. The company expects its iGaming investment to accelerate revenue growth in fiscal 2027.
