Why New Hampshire Just Doubled Down on Its DraftKings Sports Betting Monopoly
Key Highlights
- Extension Secured: DraftKings remains New Hampshire’s exclusive sports betting provider through June 30, 2028.
- Fiscal Impact: Partnership continues high 51% revenue share, funding over $172 million for state education.
- Retail Shift: New 40% promotional deduction cap supports infrastructure growth at physical sportsbook locations.
The New Hampshire Lottery Commission (NHLC) has officially exercised its first two-year extension option with DraftKings, ensuring the Boston-based operator remains the exclusive provider of mobile and retail sports betting in the state through June 30, 2028.
The decision preserves one of the most aggressive revenue-share agreements in the U.S. sports betting market and reinforces a partnership that has delivered record returns to New Hampshire’s Education Trust Fund since launch.
Key Terms of the Extension
The original 2019 contract between DraftKings and the NHLC included two separate two-year renewal options.
By exercising the first extension, state regulators are maintaining a high-tax, single-operator model that continues to generate outsized returns compared to competitive markets.
- Duration: July 1, 2026 – June 30, 2028
- Mobile Revenue Share: 51% of gross gaming revenue (GGR)
- Retail Revenue Share: 50% of GGR
Promotional Deduction Changes
- Retail Cap Increase: The allowable promotional deduction for retail sportsbooks rises from 10% to 40% of GGR. The amendment reflects higher operating costs tied to brick-and-mortar sportsbook investments.
- Mobile Cap Unchanged: The promotional deduction cap for mobile remains at 15% of GGR.
The retail adjustment provides DraftKings additional flexibility to drive on-site traffic while preserving the state’s dominant share of mobile revenue, the primary driver of overall betting activity.
A High-Performing “Monopoly” Model
Since launching legal sports betting in December 2019, New Hampshire has consistently exceeded expectations for a single-operator market. According to recent fiscal data, the state ranks among the top three nationally in sports betting revenue per capita.
In its proposal to the Governor and Executive Council, the NHLC described DraftKings as a compliant and effective partner, citing operational stability and strong financial performance.
FY 2025 Performance Snapshot
| Metric | Achievement |
| Total Handle | $815 million+ |
| Total Wagers | 27 million+ |
| Direct Education Funding | $40 million (record high) |
| Year-over-Year Growth | ~9% |
Since launch, the partnership has generated more than $172 million for public education, with a lifetime handle nearing $4.5 billion.
DraftKings recently announced that it had more than $8 billion in payouts at stake in Super Bowl LX.
Strategic Exclusivity vs. Regional Competition
While neighboring states such as Massachusetts, Vermont, and Maine operate multi-operator frameworks, New Hampshire has adopted an exclusive model.
The 51% mobile revenue share is contingent upon DraftKings remaining the sole operator. If lawmakers were to authorize additional licenses:
- The revenue share would drop to 21% with two or three operators
- It would decline further to 16% with four or five operators
By maintaining exclusivity, the state secures immediate, predictable fiscal returns. However, critics argue that competitive markets can stimulate higher overall handle and consumer choice.
Retail Expansion and Long-Term Outlook
DraftKings currently operates four retail sportsbook locations across the state. The expanded promotional deduction allowance is expected to support further infrastructure upgrades and localized marketing initiatives.
With the contract now secured through 2028, attention will eventually shift to whether the New Hampshire Lottery Commission exercises its second and final two-year option, which could extend the partnership through 2030. Such a move would result in one of the longest-running exclusive sports betting arrangements in the United States.
For now, New Hampshire is signaling confidence in a model that prioritizes maximum state revenue over market competition, and the numbers continue to support that strategy.
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