DraftKings reports 16.2% revenue growth to $1.3bn for Q3, net loss rises to $468.7m

DraftKings has reported its financial results for Q3 2026, as net revenue increased 16.2% to just over $1.3bn, even while the operator’s net loss grew 82.5% to $468.7m. 

Despite the continued net loss for DraftKings, Co-Founder and CEO Jason Robins described Q3 as a “pivotal moment” for the operator due to noticeable growth in its prediction markets business. 

“The third quarter marked a pivotal moment for DraftKings, as the Predictions offering we have been building is now powering meaningful growth for our business,” Robins said. 

“More than 1.6 million customers have engaged with Predictions year-to-date, and combined with the strength of our core, we believe we are set up for an exceptional 2027.”

Robins’ motivation may have been fueled by 21.9% growth in the operator’s sportsbook handle during Q3 as well to $13.9bn, helping lead to a 31.5% rise in sports revenue to $783.6m. 

DraftKings iGaming revenue reached $460.9m during the quarterly period, equating to an increase of 2.1%. While “other” revenue is not defined by DraftKings, the segment witnessed a revenue decrease of 12.5% to $84.5m. 

Cost of revenue and sales & marketing expenses totaled $900m and $605.7m, respectively, for Q3 – representing increases of 14.8% and 68.1%. The increases resulted in a loss from operations of $493.1m for DraftKings, having risen 81.4% year-over-year. 

The Q3 results reported by DraftKings failed to equate to negative movement on its share price at the time of markets closing, however, as the price increased 1.8% to $23.52 per share on November 5. 

Over the past 30 days, DraftKings has seen its share price grow 15.2%, including 15.7% in the previous five days.

Monthly unique players grew 13% to 4.1m for Q3 2026, reflecting new customer acquisition across sportsbook, iGaming and DraftKings Predictions. 

DraftKings also found itself in legal trouble during Q3, though, with lawsuits filed against the operator in Louisiana and by the Seminole Tribe of Florida. 

While FanDuel is also named in the Louisiana lawsuit, the Seminole Tribe of Florida alleges DraftKings Sports & Casino application violates state law by offering online sports betting to residents. 

The Seminole Tribe requested the court prohibit DraftKings from continuing operations in Florida, as well as award damages and fees – including the "restitution and disgorgement of all profits, revenues and other ill-gotten gains.”