DraftKings expects iGaming acquisition spending to support 2027 growth
Deals & M&A2 min read
DraftKings increased iGaming customer acquisition by 76% year on year in Q3 2026, while gross revenue rose 7% and net revenue 2%. CEO Jason Robins said October gross revenue growth accelerated to 12% year on year, and the company expects the new customer cohorts to contribute more in 2027.
DraftKings expects its online casino acquisition strategy to produce stronger returns in 2027, after a Q3 rise in player numbers without a matching increase in net revenue, according to the operator. Online casino customer acquisition increased 76% year on year in Q3 2026, while gross revenue rose 7% and net revenue 2%.
Online casino gross revenue growth picked up to 12% year on year in October from 7% in Q3, DraftKings chief executive Jason Robins said. Paid active days across the app also climbed 24% during the month.
Robins rejected the suggestion that DraftKings was deliberately seeking lower-value players. He said stronger-than-expected customer numbers and related promotions accounted for much of the acquisition increase. Robins said the additional promotional spending would affect short-term results but support revenue and EBITDA as customers became more established.
More efficient marketing allowed DraftKings to bring in additional customers without a proportional rise in expenditure, Robins said. The company has raised its 2027 outlook for the online casino business to account for stronger acquisition. Its projections did not depend on faster acquisition growth or better performance, though continued momentum could add upside. The primary success measure was bringing in more customers at progressively more efficient acquisition costs. Historical data supported the company's expectations for the longer-term value of those customer groups.
Online casino product changes helped the acquisition push, the operator said. The upgrades included the exclusive Cashingo franchise, along with rewards and merchandising additions.
Sportsbook net revenue grew 36% year on year in Q3, while handle was up 12%. The sportsbook's share of handle improved for a fourth straight quarter, the company said. Its online casino market share also grew for three quarters in a row, even as it invested substantially in prediction markets.