DraftKings Bets on an iGaming Recovery in 2027

DraftKings grew its iGaming customer acquisition by 76 percent year over year in the third quarter of 2026. In the same period, gross revenue rose 7 percent and net revenue grew 2 percent. The gap is due to high promotional spending aimed at attracting new players.

The company expects these players to generate more value over time. CEO Jason Robins said on the earnings call that iGaming gross revenue growth rose to 12 percent year over year in October, up from 7 percent in the third quarter. In the same month, the number of paying daily active users in the app rose 24 percent.

Robins rejected the claim that the company is targeting low-value players. According to Robins, most of the increase came from more new customers than expected and from promotions aimed at them. He said new customer promotions will weigh on profitability on a quarterly basis but will strengthen revenue and EBITDA in later quarters. Robins also added that marketing has become more efficient and that the number of customers has not grown in proportion to spending.

The company expects the impact of these customer groups to become visible throughout 2027. However, it is not yet clear whether the new customers will generate sustainable revenue, meaning whether continued promotional investment will be needed.