A marine outboard engine has an upper motor cover, a lower cover, an engine, a driveshaft, a gear case, a rotor shaft, and a bladed rotor. First and second exhaust housings are disposed in the lower cover below the engine. The second exhaust housing at least partially surrounds the first exhaust housing. A first exhaust chamber is formed by the first exhaust housing. The first exhaust chamber fluidly communicates with the engine. A second exhaust chamber is formed between the second exhaust housing and the first exhaust housing. The second exhaust chamber fluidly communicates with the first exhaust chamber. A third exhaust chamber formed between the second exhaust housing and the first exhaust housing below the second exhaust chamber is also disclosed. The third exhaust chamber fluidly communicates with the second exhaust chamber and an exterior of the marine outboard engine.